Energy tariffs will not be increased in Ukraine. The International Monetary Fund (IMF) did not make such a demand when it updated the memorandum on economic and financial policy within the framework of the fifth review of the credit program.
This is reported by the Ministry of Finance of Ukraine.
It was noted there that all updates of the memorandum considered the potential possibility of increasing tariffs for energy carriers — that is how they wanted to solve the problems in the Ukrainian energy sector that arose due to a full-scale war. But the Ministry of Finance notes that this is possible only if enough resources are allocated to provide for vulnerable households.
At the same time, the updated memorandum states that by the end of December 2024, Ukraine must adopt a law on restarting the Accounting Chamber, adopt amendments to the law on law-making activities to ensure the functional independence of the National Energy Regulatory Commission of Ukraine, and form a full supervisory board of “Ukrenergo”.
One task was given to the National Bank — to assess the key financial and operational risks for financial stability under various scenarios and to prepare contingency plans by the end of October.
IMF also postponed two previously established beacons, in particular the NABU audit (postponed from the end of September 2024 to the end of January 2025) and changes to the Criminal Procedure Code regarding the expiry of pre-trial investigation periods (postponed from the end of October to the end of December 2024).
Aid from IMF
On October 18, 2024, the Board of Directors of the International Monetary Fund approved the fifth revision of the Extended Fund Facility (EFF) for Ukraine. This means almost $1.1 billion in direct budget funding.
The Extended Fund Facility for Ukraine from IMF is effective from 2023 and is designed for four years — until 2027. The total amount of the program is $15.6 billion. EFF is part of Ukraineʼs international support package, which currently amounts to approximately $122 billion.
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