IMF urges Ukraine to let market determine gas prices

KIEV: The International Monetary Fund said on Friday that Ukraine should allow the market to determine gas prices as promised under a $17.5 billion loan programme, after the government extended a below-market level pricing system for households.

The IMF representative to Ukraine, Goesta Ljungman, said in emailed comments to Reuters that low prices for households amounted to subsidies that were regressive and helped the largest users the most.

"We believe that it is important to let gas prices - including tariffs for households - be determined by the market, in line with the reforms that were implemented in 2016, and which were one of the major achievements of the reform process in Ukraine in recent years," he said.