Amid an uneasy ceasefire, a spiraling currency, pension cuts, the re-introduction of the military draft, and faltering public services, now ordinary Ukrainians are likely to see their utility costs skyrocket.
IMF officials and the Ukrainian government have been negotiating proposals that would substantially raise gas and heating tariffs for Ukrainian households, as part of the IMF's agreement to provide Ukraine with a new $17.5 billion rescue plan. The plan is conditioned on Ukraine making a number of changes to its national budget, in areas including price subsidies, pensions, tariffs, and the tax code.
"The package of documents includes not only amendments to the 2015 state budget, but also a change in tax laws. It also includes an increase in gas tariffs by 264 percent and an increase of 64 percent on tariffs for heating," a National Bank of Ukraine official participating in the IMF-NBU meeting told the Ukrainian newspaper Vesti. The official added that the NBU "has little doubt that the MPs will vote for the necessary package of measures."
According to Alexandr Klimenko, the former Minister of Revenue and Duties, the proposed changes, which will be voted on at a special session of the Verkhovna Rada on February 25, leaves little money to assist ordinary Ukrainians in coping with the rising rates. "For those counting on subsidies, let's use simple arithmetic: Subsidies to Naftogaz in 2014 comprised about 100 billion hryvnia ($3.8 billion US); in 2015, they will be reduced to 30 billion hryvnia ($1.15 billion); the difference will be covered by an increase in tariffs. At the same time, subsidies for low-income families in 2015 will amount to only 12.5 billion hryvnia ($479 million). The difference in the amount of 57.5 billion hrynvia ($2.2 billion) will theoretically now be covered out of the pockets of Ukrainians."
Complete story at - Ukrainian Households Face 264% Spike in Utilities Rates on Gas / Sputnik International
IMF officials and the Ukrainian government have been negotiating proposals that would substantially raise gas and heating tariffs for Ukrainian households, as part of the IMF's agreement to provide Ukraine with a new $17.5 billion rescue plan. The plan is conditioned on Ukraine making a number of changes to its national budget, in areas including price subsidies, pensions, tariffs, and the tax code.
"The package of documents includes not only amendments to the 2015 state budget, but also a change in tax laws. It also includes an increase in gas tariffs by 264 percent and an increase of 64 percent on tariffs for heating," a National Bank of Ukraine official participating in the IMF-NBU meeting told the Ukrainian newspaper Vesti. The official added that the NBU "has little doubt that the MPs will vote for the necessary package of measures."
According to Alexandr Klimenko, the former Minister of Revenue and Duties, the proposed changes, which will be voted on at a special session of the Verkhovna Rada on February 25, leaves little money to assist ordinary Ukrainians in coping with the rising rates. "For those counting on subsidies, let's use simple arithmetic: Subsidies to Naftogaz in 2014 comprised about 100 billion hryvnia ($3.8 billion US); in 2015, they will be reduced to 30 billion hryvnia ($1.15 billion); the difference will be covered by an increase in tariffs. At the same time, subsidies for low-income families in 2015 will amount to only 12.5 billion hryvnia ($479 million). The difference in the amount of 57.5 billion hrynvia ($2.2 billion) will theoretically now be covered out of the pockets of Ukrainians."
Complete story at - Ukrainian Households Face 264% Spike in Utilities Rates on Gas / Sputnik International
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