Yanukovych: Ukraine will not raise household gas tariffs

President Viktor Yanukovych said categorically yesterday that Ukraine would not increase household gas tariffs, despite demands from the International Monetary Fund in order to unlock its frozen standby loan, according to an announcement on his website. Of the tariff increase, Yanukovych said, “We have not and will never agree to that.” 

Brad Wells: Yanukovych’s comments confirm our view that progress in IMF talks is unlikely at least until after the parliamentary elections in October as it is politically inexpedient to raise the gas rates now. In our base case macro forecasts, we assume Ukraine will not get fresh funds from the IMF this year.