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Ukraine once again decided to raise gas prices

В Украине в очередной раз перенесли повышение цен на газThe government has so far refused to raise the price of gas for citizens.

The Cabinet of Ministers extended the effect of special obligations (PSO) for the sale of natural gas for the population and Teplokommunenergo (CTV) at a reduced price until October 18.

This was reported by press Secretary of the Prime Minister Volodymyr Groysman Basil Ryabchuk.

According to him, the decision was taken at a government meeting on Friday.

Recall that in March 2015, Ukraine and the IMF signed a Memorandum of economic and financial policies which the country should undertake in the framework of the EFF. The entire program provided Ukraine about $17 billion, of which already allocated $7.7 billion.

Now Ukraine is in a difficult negotiation process with the IMF on the gas issue since July of 2017: the Fund insists on raising gas prices for households to economically justified level. The increase, according to various estimates, can range from 30% to 60% in connection with growth of prices on international markets.

The government has so far refused to raise the price of gas for citizens, arguing that it is first necessary to provide expansion joints for the poor.

Earlier media, citing close to the government source, said the new offer Ukraine a compromise in the negotiations with the IMF about the price of gas. The package consists of several steps.

The position of the IMF is quite hard, as the government of Ukraine in 2017, took the decision to raise gas prices, which allowed us to obtain the next tranche of the IMF loan. Subsequently, however, the Cabinet unilaterally refused to perform this obligation.

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