Ukraine to hike domestic gas prices by 50 percent to meet IMF demands

KIEV Wed Mar 26, 2014 11:03am EDT

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KIEV (Reuters) - Ukraine is raising the price of gas for domestic consumers by more than 50 per cent from May 1 and will implement further rises under a fixed timetable until 2018, an official of state energy company Naftogaz said on Wednesday.

The step, which will be widely unpopular with ordinary Ukrainians who have grown used to subsidised gas prices from the Soviet era, were taken in response to demands by the International Monetary Fund.

The interim government of Arseny Yatseniuk is in the final stages of talks with the Fund to secure $15-20 billion in a new aid package.

(Reporting by Pavel Polityuk; Writing By Richard Balmforth; Editing by John Stonestreet)

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Comments (4)
QuidProQuo wrote:
I’ll assume that many Ukranians that live along the Russian border will just cross over to that side for cheaper gas. The Ukranians not so close to the border will just have to deal with the price hike and accept that this is supposedly going to be for the greater good in the long run. Those aid packages from the IMF do come with certain contingencies I guess.

Mar 26, 2014 11:59am EDT  --  Report as abuse
OldUncleDave wrote:
Those in power after a violent coup are called a Junta, not “the interim government.”

Mar 26, 2014 9:37pm EDT  --  Report as abuse
SandraWebber wrote:
No wonder Crimeans were smiling broadly, Now that they are Russians they pay only 17 percent flat tax rate and are debt free. While the rest of Ukrainians are debt slaves to the IMF.

Mar 27, 2014 3:46pm EDT  --  Report as abuse
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