Ukraine, with technical support from the International Monetary Fund, is preparing a roadmap for the gradual liberalization of the energy market. Following the implementation of social protection mechanisms for vulnerable households, tariffs for the population are to be gradually adjusted. This is reported by UNN with reference to the IMF.
In the energy sector, the primary focus is on reforms aimed at preparing for market liberalization. The current system of utility tariffs for households and the associated public service obligations have weakened the financial position of state-owned energy companies, limiting resources for necessary investments and repair work
IMF forecasts Ukraine's GDP growth to slow to 1-1.6% in 202612.06.26, 21:38
The IMF emphasized that to rectify the situation, the authorities, with technical assistance from the IMF, are preparing a roadmap for the gradual liberalization of the energy market, which includes social protection mechanisms for vulnerable households.
Once such mechanisms are in place and based on the roadmap, household tariffs should be gradually adjusted to address the financial challenges facing the sector and improve its position for attracting investment. Enhancing the integrity and independence of the energy regulator (NEURC) will further contribute to the long-term sustainability of the sector
As a reminder
IMF staff and the Ukrainian authorities reached a staff-level agreement on the first review of the EFF. Additionally, Kyiv will gain access to approximately 690 million US dollars, subject to approval by the IMF Executive Board.