The International Monetary Fund (IMF) has stated a strict condition for continuing financial support for Ukraine: the country must prepare a plan for the gradual increase of utility tariffs for citizens. This requirement has become a key point of the new financing program, as revealed in the fund's press release and publications by Ukrainian parliamentarians.
Why the IMF is demanding tariff reforms
Experts from the fund point to a systemic problem: the current policy of artificially low utility prices (PSO) undermines the financial stability of state energy companies. Due to chronic underfunding, enterprises cannot carry out necessary repairs, update equipment, or invest in infrastructure development.
The IMF insists on a transition to a free energy market — but not immediately, but in stages. To this end, the Ukrainian government, with technical support from the fund, must develop and approve a detailed roadmap for reforms.
Social protection — a mandatory condition
Important: tariff increases cannot be implemented without a reliable social support system. The IMF requires that before any change in the cost of services, mechanisms to assist families that will not be able to cope with new expenses be introduced. Only after launching such protection can price adjustments begin.
The goal is to stabilize the energy sector and attract private and international investment in its development. Without this, according to the fund, the industry will remain in a state of chronic crisis.
Additional conditions and program status
In addition to tariff reform, the IMF requires Ukraine to strengthen the independence of the National Commission for State Regulation in the Fields of Energy and Utilities (NKREKU). It is also necessary to introduce a tax on parcels from abroad — another element of the reform package.
On the evening of June 12, the fund announced a revision of the financing program, despite the fact that not all previous conditions were met. Now the updated plan must be approved by the IMF Executive Board.
To date, fixed prices for gas and electricity for the population are in effect in Ukraine. The implementation of the IMF's new requirements could become a turning point in the history of Ukrainian energy — but only if social justice and transparency of the process are ensured.