Adventures in Capitalism and the West: IMF Requires Ukraine to Increase Gas Price by a Whopping 40%

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Published on: Oct 25, 2018 @ 19:18  – Ukraine, as part of an agreement with the International Monetary Fund, will have to raise the price of gas for the people by another 40 percent, writes the Internet publication “Economic Pravda” with reference to an “interlocutor familiar with the position of the IMF”.

The program of cooperation with the fund provides for bringing the price of gas to the market, the source said. “The IMF is sure that Ukraine will not be unable to fulfill such“ preferential conditions ”for raising gas prices,” the article says.

If earlier it was a question of one-time increase in tariffs, now it is proposed to do this in several stages, the newspaper notes. So, in the spring of 2019, prices should rise by 15 percent, and the next increase is planned for the autumn.

This year, the Ukrainian government has already raised gas prices – from November 1 to 23.5 percent. Now a thousand cubic meters will cost 8.5 thousand hryvnias to the residents of the country (approximately $ 305 at the official rate). At the same time, Prime Minister Vladimir Groysman said that a compromise was reached with the IMF – the fund demanded an increase of 60% immediately. The head of the Cabinet also promised that in this heating season tariffs will not increase anymore.

IMF requirements

Raising gas prices is one of the conditions for the IMF to continue cooperation with Kiev. The mission of the fund worked in the Ukrainian capital from September 6 to September 19, and, as reported by the media, put forward four conditions for obtaining a new loan. In addition to raising gas prices, Kiev must conduct an anti-corruption reform, adopt a balanced budget and reorganize the State Fiscal Service.

Moreover, according to media reports, this is a stand-by program – because of the inability to fulfill the requirements of the existing program, Kiev is forced to negotiate a loan of five to six billion dollars for a period of 12-15 months with the fund.

The four-year IMF assistance program provides for the allocation of $ 17.5 billion to Ukraine. The first tranche of five billion dollars was received by Kiev in March 2015, the second – by 1.7 billion – in August of the same year, and the third and fourth – by a billion each – in 2016 and 2017. The Ukrainian authorities expected to receive the fifth tranche by the end of 2017, but it has not yet been allocated. Now Kiev expects to get it back this year.

 

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Garry Compton
Garry Compton
3 years ago

The IMF will try to get back as much money as they put into Ukie-ville before Nord Stream II is finished and Russia cuts the Ukie gaz line down to 1/2 exports. Could be tricky for Putin since the Rothschild gaz line has the Ukie nazis and Nato as its proxy armies. The downing of the Russian plane in Syria should have given the Russian people a wake-up call but it doesn’t seem to have happened yet. Putin should have expelled some embassy people on that one.

Mychal Arnold
Mychal Arnold
Reply to  Garry Compton
3 years ago

Sorry, but the Russian people are very much aware of what is going on! Try watching their Vesti news hour. These people are very well informed! O

Garry Compton
Garry Compton
Reply to  Mychal Arnold
3 years ago

I live there M A and many don’t get angry or upset at Israel. In fact when I discuss that part of the whole picture – they looked puzzled. Maybe it’s just the area I live in – though.

ravenise
ravenise
3 years ago

Have the Ukrainians figured it out yet?

Mychal Arnold
Mychal Arnold
Reply to  ravenise
3 years ago

Nope, that poroshenko is a evil Man! Using his own people like doormat, and killing them to boot. Good job Ussa another killer put into office. How can that man sleep at night. Betcha, he would pee his pants if he was prosecuted and found guilty then put into general population and you know there might be a gripe or two with this Evil being!

Jonathan Jarvis
Jonathan Jarvis
3 years ago

Did ukraine pay back to Russia the 3b bonds yet? Can you update please.

Mychal Arnold
Mychal Arnold
3 years ago

The rape and pillage has begun! What a evil being their leader is!

experience
experience
3 years ago

It is only up to people in the parts of Ukraine under Kiev’s control to change the course of the country

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