Ukraine has promised the IMF to lift the moratorium on rate hikes: gas and heating prices will rise
26 July 14:09
Ukraine has committed to the International Monetary Fund to gradually raise gas, electricity, and heating rates for households to cost-recovery levels, while providing targeted support to vulnerable households. This is stated in the updated Memorandum on Economic and Financial Policies, according to "Komersant Ukrainian".
“We are firmly committed to implementing an ambitious reform program to address long-standing structural problems in the energy sector, which have been exacerbated by the war unleashed by Russia. Restoring the sector’s sustainability and reducing quasi-fiscal obligations will require a gradual increase in tariffs for households,” the document states.
By the end of July 2026, the Ministry of Energy will prepare a draft roadmap for the gradual liberalization of the gas and electricity markets, complete with a clear timeline.
Based on this draft and proposals from stakeholders, the Cabinet of Ministers plans to approve the final roadmap by the end of December 2026, after coordinating it with the European Commission.
It will outline the steps necessary to reform the mechanisms for imposing public service obligations (PSOs) with the aim of gradually liberalizing prices after the lifting of martial law and ensuring adequate protection for vulnerable consumers.
By the end of February 2027, the government will assess the fiscal and social impact of a potential rate increase on current and new subsidy recipients.
At the same time, the government plans to draft amendments to Law No. 2479-IX to lift the moratorium on price increases for gas, heat, and hot water.
Gas prices and electricity rates will be raised gradually, while the amount of subsidies will be adjusted accordingly.
“We will also study the mechanisms and prepare legislative changes so that heating and hot water rates, which are set at the local level, gradually reach the level of full cost recovery and are subsequently maintained at that level,” the memorandum states.
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