Ukraine mulling Russia gas deal to secure IMF loan

The first tranche of a new IMF loan in the amount of $1.5 bln could arrive in February-March, reported on Dec. 12 the Kommersant-Ukrayina newspaper, citing an anonymous source in the National Bank of Ukraine (NBU). About USD500 mln would be earmarked for the NBU and USD 1 bln for the government’s use, out of a total possible standby program of USD12 bln. The biggest obstacle to securing the loan remains the IMF demand for higher household natural gas prices, the source said. The Ukrainian government’s possible solution would involve negotiating lower gas prices from Gazprom “which will be enough for the IMF,” the source said. President Viktor Yanukovych will travel to Moscow on Dec. 17-18 to negotiate lower gas prices. The Russian government wants major concessions from Ukraine, which include a stake in the nation’s gas transit system and measures to integrate with the Customs Union.