Tihipko: Gas prices for Ukrainians to be raised if no compromise is reached with Russia

02.12.2011 14:24 "Agro Perspectiva" (Kyiv) — If there is no progress in talks with Russia on the gas price, the Ukrainian government will be obliged to raise gas prices for households. Ukrainian Deputy Prime Minister and Social Policy Minister Serhiy Tihipko announced this at the Ukrainian-French business forum in Paris, UKRINFORM reports. «Ukraine pays Russia USD 415 per 1,000 cubic meters, taking into account ’Black Sea Fleet agreements.’ That’s a high price for us. Therefore, if we do not agree with the Russians, we will have to raise gas prices for households and utility companies so as to meet IMF demands and obtain new loans. The government has no other way out of this situation,» Tihipko said. He said that in this case, prices on the consumer market in Ukraine would grow by no more than 7%. As reported, the EU-U.S. Energy Council, after a meeting in Washington on November 28, proposed that Ukraine revise domestic gas prices. A 32% increase in tariffs for households and a 56% increase in tariffs for heat suppliers are a demand by the International Monetary Fund for Ukraine to get the next tranche of a loan.

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