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Thursday, March 27, 2014

Ukraine agrees to 50% gas price hike amid IMF talks

http://www.bbc.com/news/business-26758788

An official at Ukraine's Naftogaz state energy company said the price rise would take effect on 1 May, and further rises would be scheduled until 2018.
Ukrainians are accustomed to buying gas at heavily subsidised rates.
But the IMF has made subsidy reform a condition of its deal.
Ukraine currently buys more than half of its natural gas from Russia's Gazprom, and then sells it on to consumers at below market prices.
Yury Kolbushkin, budget and planning director at Naftogaz, told reporters that gas prices for district heating companies would also rise by 40% from 1 July.
IMF negotiators are still in Kiev to negotiate a package of measures worth billions of dollars to help Ukraine's interim government plug its budget deficit and meet foreign loan repayments.

 

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