Ukraine minister says IMF anxious by approach to regulate fuel charges

KYIV, Jan 14 (Reuters) – Ukraine’s finance minister mentioned on Thursday that the Global Financial

KYIV, Jan 14 (Reuters) – Ukraine’s finance minister mentioned on Thursday that the Global Financial Fund was concerned about the government’s approach to regulate family gas price ranges, even though the Fund has not officially commented on the program.

These kinds of a system would not assistance Ukraine start out its currently stalled $5 billion bank loan programme with the IMF, Serhiy Marchenko explained in a stay job interview on Ukrainian Radio NV.

“Our associates know about it. They are concerned that we are revising some of our previously commitments,” Marchenko reported.

IMF officials could not quickly be achieved for comment.

Primary Minister Denys Shmygal reported on Wednesday the government would introduce point out regulation and established a uniform gas selling price of 6.99 hryvnia ($.25) for every cubic metre during the country’s coronavirus lockdown or in the course of wintertime, to avoid a bounce in strength charges that have already led to protests throughout the region.

The price of fuel in Ukraine has long been a political problem, and opposition parties often use strength price tag hikes as a explanation to protest from the authorities.

The authorities states gas rates took off last month and in January, with gasoline businesses supplying the public at rates normally exceeding 10 hryvnias ($.36) for every cubic meter.

“We have an obligation in the memorandum on the launching of industry mechanisms in the purely natural fuel market… These are clear commitments and they should be adhered to,” Marchenko stated.

“Now the situation is to convince our companions that this stage can be element of a system or a short term solution”.

Last June, the IMF approved the $5 billion bank loan programme and disbursed the initially tranche of $2.1 billion to assistance the Ukrainian financial state, which has been strike difficult by the coronavirus pandemic.

Even further loans have been frozen because of to the slow speed of reforms in Ukraine. (Reporting by Natalia Zinets Modifying by Hugh Lawson)