You're reading: Azarov says terms of cooperation with IMF could be reviewed

Ukrainian Prime Minister Mykola Azarov has said that the terms of cooperation with the International Monetary Fund (IMF), under which the fund provides lending to Ukraine could be reviewed if the Ukrainian market does not develop as rapidly as planned.

"Due to the fact that world markets are in a state of uncertainty, we are experiencing serious problems. The plans that we have been building together with the IMF mission, first and foremost, those related to economic development, could be reviewed if our domestic market does not develop as rapidly as we expected," he told journalists in Kyiv on Feb.4.

First Deputy Prime Minister and Minister of Economic Development and Trade Andriy Kliuyev said earlier that the Ukrainian government believes that it is inexpedient to significantly increase the price of natural gas for consumers in April-May 2011, and intends to prove its point to the IMF.

"As for everything that concerns the increase in the gas price – we are actively holding talks, and we believe that after bringing order to the tariffs and price formation, there will be no need to raise the price of gas so significantly in April or May. Therefore, we are conducting discussions [with the IMF]," Kliuyev said at a press conference in Kyiv on Feb.2.

Under the memorandum of cooperation with the IMF, Ukraine intends to gradually raise gas prices for households and municipally-owned heat suppliers until domestic prices and import prices reach parity. From August 1, 2010, the price of natural gas for the public and the price of gas for enterprises supplying heat and hot water to the public grew by 50%. An additional 50% increase in the price of natural gas for the public is expected in April 2011.