Ministry of Finance: The IMF memorandum does not oblige Ukraine to raise energy tariffs

The updated memorandum of the International Monetary Fund (IMF) as part of the fifth review of the Extended Fund Facility (EFF) program does not contain obligations for Ukraine to increase energy tariffs. This was reported by the press service of the Ministry of Finance of Ukraine.

The department noted that during the review of the memorandum, the possibility of increasing energy tariffs was discussed as one of the measures to solve the problems that arose in the energy sector due to a full-scale war. However, according to representatives of the Ministry of Finance, the implementation of such measures is possible only if there are sufficient and targeted resources to support the vulnerable population.

In the memorandum, which was concluded in March 2023, after each revision there was a section devoted to reforms in the energy sector. The updated document, dated October 18, 2024, repeats the potential measures proposed in previous versions and does not impose new obligations on Ukraine to increase energy tariffs during the war.

According to the updated economic and financial policy memorandum released as part of the fifth review of the EFF program, the Ukrainian government is committed to increasing energy tariffs as soon as conditions allow. This increase will be carried out taking into account the new methodology and social considerations, including during military operations.

The government also plans to approve a roadmap for the gradual liberalization of gas and electricity tariffs with specific implementation dates after the end of martial law. These steps will contribute to the stabilization of the energy sector in Ukraine.

By the end of October 2024, the Cabinet of Ministers, together with authoritative auditors, must conduct an analysis of the debts of enterprises in the field of centralized heat supply to Naftogaz of Ukraine for the period before and after February 2022. To solve the problem of this debt, the government is obliged to develop a new methodology for forming the heating tariff, which will allow to ensure an effective financial model for the energy sector.