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Issue of market orientation of energy tariffs likely to be discussed at post-war stage of EFF program – IMF

KYIV. April 1 (Interfax-Ukraine) – The International Monetary Fund (IMF) recognizes the difficulty of reforms to raise energy tariffs to market levels during the war and predicts that this issue will be discussed with Ukraine as part of the EFF program at its second, post-war stage.

The IMF mission chief for Ukraine, Gavin Gray, said at the moment it would be politically very difficult to start reforms that would entail the restoration of prices to market levels … We will first discuss such reforms with the authorities in the second half, he said.

He told reporters he would not say it was impossible, but it depends on the type of energy.

He noted for certain types of energy, this could happen faster, but for critical natural gas, it looks like it will happen later.

He added this was his general understanding of things, but everything could change quickly. So if circumstances change, we will definitely discuss it, he said.

“Ambitious reforms will be required in the energy sector to enhance competition, improve market mechanisms, and reduce large quasi-fiscal risks. Deepening integration with the EU single market and steadfastly implementing the EU accession requirements will be crucial to bring to fruition long sought institutional and structural reforms,” the fund said in the press release.

In the previous EFF Ukraine program with the fund, the issue of gas tariffs for households and heating utilities was one of the most pressing.