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A new memorandum to the IMF proposes an increase in utility tariffs

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Ukrainian officials are waiting for “external funding and the provision of transparent and exclusive direct budget support.”

The Ukrainian authorities, in a letter of intent to the management of the IMF, allow for a gradual increase in utility tariffs for the population during the war. Tariffs would also increase in the postwar period. This is confirmed by the Memorandum with the IMF.

“Potential reform measures, when conditions permit, include further gradual tariff increases (taking into account the new tariff scheme and wartime social considerations),” the note of the document.

Ukrainian officials also expect “external financing and the provision of transparent and exclusive direct budget support to state-owned energy enterprises, pending available budget resources.”

The post-war reform agenda in the energy sector in particular will require renewal and increased competition in the wholesale and retail gas markets.

The Cabinet of Ministers of Ukraine will adopt a road map for the gradual liberalization of the gas and electricity markets with a set implementation plan for the post-martial law period.

The updated Memorandum with the IMF was signed by Ukrainian President Vladimir Zelensky, Prime Minister Denis Shmigal, Finance Minister Sergei Marchenko and NBU head Andriy Pyshny. The document contains voluntary commitments by the country’s authorities to take certain steps.

Earlier, the IMF published an updated memorandum on Ukraine, the fulfillment of the terms of which will determine additional support for our state.

Subsequently, we wrote that the International Monetary Fund Board completed its fifth review of the Extended Fund Program for Ukraine, which made it possible to allocate approximately $1.1 billion for Ukraine, which will be used to support the budget.


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Source: korrespondent

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