Gas reform part of IMF Ukrainian financing

By OGJ editors
HOUSTON, Aug. 12 -- The International Monetary Fund has approved a $15.1 billion financing package for Ukraine that includes reform of the country’s gas industry.

The package, which also includes government-finance and banking-system reform, will seek to modernize the gas industry and restore financial stability of Naftogaz, the state-owned gas company.

IMF said the program will eliminate the company’s budget deficit by next year through a series of steps that include tariff hikes and the removal of political influence over pricing mechanisms used by Ukrainian utilities.