Ukraine plans in 2015 to reduce the deficit of Naftogaz Ukrainy to 3.1 percent of gross domestic product (GDP), according to the memorandum between the International Monetary Fund (IMF) and the government of Ukraine.
“The financial recovery of Naftogaz Ukrainy is the key objective of the program. To do this, we [the government] will take drastic measures to increase tariffs for the population, improve the level of payment and reduce costs to cut the deficit of Naftogaz to 3.1 percent of GDP in 2015 and fully overcome it by 2017. These steps will be accompanied by the substantial restructuring of the company to strengthen corporate governance and improve operational efficiency,” reads point 28 of the document.
As noted in the document, the process of increasing gas prices to a level of parity with imports is to be completed by April 2017.
