Ukrainian govt commits to liberalize gas, electricity markets, raise utility rates - IMF

MOSCOW. Feb 27 (Interfax) - The Ukrainian government has committed to develop a roadmap to liberalize gas and electricity markets by the end of June 2026, particularly providing for gradually increasing electricity, gas, heating, and hot water tariffs, in line with Ukraine's memorandum of economic and financial policies the International Monetary Fund (IMF) has published on its website, Ukrainian media reported.

"A roadmap to liberalize gas and electricity markets will be adopted by end-June 2026 in line with Ukraine Facility Plan commitments. Gradual increases in electricity, gas, heating, and hot water tariffs should begin early to raise resources for reconstruction and investment," the document says.

Overall, in line with the program, the government committed to a comprehensive reform of the energy sector to restore the sustainability of state-owned enterprises in it and facilitate investment in reconstruction.

The authorities also committed to strengthen the independence of the National Commission for State Regulation of Energy and Utilities and reform the commissioners' nomination procedure to reduce political interference by including members proposed by the international community.

The IMF noted that, for the first time since the start of the crisis, the Ukrainian state budget provided Naftogaz with UAH 8.4 billion for imports, creating a risk of future budgetary outlays, given import needs are likely to remain large in 2026.

As reported, the IMF Executive Board earlier approved a new 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 5.9 billion (about $8.1 billion, or 295% of quota).