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No rise in retail gas prices in Ukraine after parlt election - PM

September 20, 2012, 19:03 UTC+3
Azarov recalled that earlier the parties issued a joint statement to declare the readiness for further cooperation
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KIEV, September 20 (Itar-Tass) —— Retail gas prices in Ukraine will stay as they are after the parliamentary elections, Prime Minister Nikolai Azarov said on television on Thursday.

“No decisions to raise tariffs will follow after October 28 (the day of parliamentary elections),” Azarov said.

He specifically pointed out that the government’s position was expressed at his recent meeting with IMF representatives, who insist on a revision of prices as a pre-condition for the resumption of the standby credit facility.

Azarov recalled that earlier the parties issued a joint statement to declare the readiness for further cooperation. Azarov said Ukraine was interested in implementing energy supply programs, in which other international financial structures, such as the World Bank, might act as Ukraine’s partners.

The IMF says rises in housing and utility services and retail gas prices are pre-conditions for the resumption of lending. Ukraine argues the conditions are unacceptable.

In 2010 the IMF approved of a 15.5 billion-dollar credit support program for Ukraine. So far two tranches (3.4 billion dollars all in all) have been disbursed, but the program has been suspended since December 2010. In 2011 the fund was prepared to extend to Kiev 1.5 billion dollars in support for reform quarterly, but Ukraine failed to comply with the assumed obligations and received nothing.

 

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