Government officials say they will try to convince the fund to drop or soften its requirements once Kyiv agrees to a cheaper gas price with Russia.

The IMF should stick to its guns.

It would require a huge discount to bring import prices into line with those charged to households. Such a large price cut is unlikely.

A deal with Russia to reduce the gas-import price will not solve the long-term issues of financial imbalances and waste in Ukraine’s gas sector. Raising the gas price for households will aid the long-term financial stability of state energy company Naftogaz, which currently sells gas to households and heating companies at below cost price, with the losses covered by the government.

It will also encourage consumers to use gas and heating more efficiently, as opening a window instead of turning the heat down will soon seem like an unnecessary expense.

Undoubtedly, there are many in the population who cannot afford such a rise in prices. For this reason, the government needs to introduce targeted subsidies for the poorest members of society, rather than supporting everyone, including the well-off, with a blanket subsidy.

If this is correctly and fairly implemented and explained, the political damage to President Viktor Yanukovych and his ruling Party of Regions will be minimized.

If not, Ukraine will continue to face problems each year balancing Naftogaz’s books or be forced into making unappealing concessions to Russia to regain a lost era of cheap gas.