The Memorandum with the IMF allows for a gradual increase in tariffs for utility services in Ukraine.
The Ukrainian authorities allow a gradual the increase in the cost of utility services for the population during the war and after its end.
This is stated in the letter to the IMF management.
“Ensuring the sustainability of the system and reducing quasi-fiscal obligations will require gradual increases in gas and electricity tariffs to recover costs while simultaneously allocating adequate and targeted resources to protect vulnerable households,” the document says.
As noted in the memorandum, Ukraine has increased electricity prices for population from June 1 to help restore grid stability ahead of the 2023/24 heating season.
“In the short term, the list of options includes raising tariffs, securing external financing and providing transparent and exclusive direct budget support depending on from the availability of budgetary resources,” the Memorandum says.
After the end of the war, the reform program in the energy sector, among other things, will require the resumption and strengthening of competition in the wholesale and retail gas markets, the document notes.
The updated Memorandum with the IMF was signed by the President of Ukraine Vladimir Zelensky, Prime Minister Denis Shmigal, Finance Minister Sergei Marchenko and the head of the NBU Andriy Pyshny.
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