Ukraine’s IMF memorandum envisages raising gas tariffs 30% vs. previous 50% target

The Ukrainian government and International Monetary Fund agreed, in a memorandum published yesterday by the newspaper Zerkalo Nedeli, to a gas tariff hike of 30% in 2011, vs. the 50% increase envisaged in agreements struck last year. The government said it estimates the tariff hike will reduce Naftogaz of Ukraine’s deficit to UAH 8.5 bln. The first increase is scheduled for April 15: +15% for gas prices and +26% for heating rates for households, with a subsequent hikes on June 30 of +10% for gas and on October 1 of +26% for heating.  Concorde Capital: Slower than expected tariff growth should help keep inflation in the single digits in 2011, in line with our 9-10% projection.