Verkhovna Rada’s speaker Andriy Parubiy has supported the “inevitable” decision by the Cabinet of Ministers led by Volodymyr Groysman to raise natural gas rates because this is a prerequisite for the support by the International Monetary Fund, which Ukraine desperately needs in order to avoid an economic crisis.
Parubiy’s statement, which was published by the Verkhovna Rada’s press service on October 20, says that, walking on the path towards a thriving, strong, and advanced Ukraine, sometimes one must take decisions, which “are not and cannot be sought after.”
“However, the real leaders who are in charge of economic functions of the government must take them if need be, even though this may affect their personal popularity,” he said.
He said that in the past outrage-mongers led Ukraine into a very deep economic situation and the current leaders of the state are forced to carry out harsh economic reforms.
“As the chairman of the Verkhovna Rada of Ukraine, I have led meetings with a number of delegations from our Western allies, including a delegation from the World Bank and the International Monetary Fund. I have personally called on our international partners to remove the gas price raising issue from the agenda. However, I understand that an increase in the gas price is a decision that cannot be avoided because this is what the financial support of Ukraine by the International Monetary Fund depends on, and our nation is in great need of it now. This decision is necessary to avoid an economic crisis in Ukraine,” Parubiy said.
The parliament’s speaker recalled that Ukraine took an international obligation to level up prices for gas as long ago as in 2008, and since then “those obligations have been reflected in all the memoranda with the IMF.”
“I consider it my duty to uphold the decision taken by the government led by Volodymyr Groysman because he is taking the responsibility for unpopular but necessary reforms that are needed for the strengthening, development, and security of Ukraine. I am sure that the system of subsidies developed by the government will provide a real economic protection to every Ukrainian family who is in need of it,” the speaker said.
He said that the strategic goal of the Ukrainian authorities is to build an economically strong, united, and energy-independent Ukraine that is “a securely protected and leading European nation.”
“Our top value and guide mark is the safe, free, and prosperous life of the Ukrainian people.”
As was reported earlier, on October 19, 2018, the Cabinet of Ministers made a decision to increase the prices for natural gas for the population and district heating companies by 23.5 percent.
It became known on the same day that the International Monetary Fund and Ukraine had reached an agreement on a new 14-month Stand-By Arrangement (SBA) that is to replace the IMF Extended Fund Facility (EFF) that was approved in March 2015 and is coming to an end in March 2019.
“The new SBA, with a requested access of SDR 2.8 billion (equivalent to $3.9 billion), will provide an anchor for the authorities’ economic policies during 2019,” the IMF’s statement reads.
