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Discount for Russian gas improves Ukraine's position in negotiations with IMF - Government Commissioner

15-01-2014 17:29

Reduction of a gas price with a loan from the Russian Federation improves Ukraine's positions at negotiations with international financial institutions and creates prerequisites for getting a credit from the IMF on better conditions, Government's Commissioner for Cooperation with the Russian Federation, Commonwealth of Independent States, Eurasian Economic Cooperation and other regional associations Valeriy Muntiyan has said.

“Reduction of a price for Russian gas to USD 268.5/1,000 cu m, on top of everything else, provides possibility to fulfill criteria of the International Monetary Fund and to get another credit at USD 15 billion, however, on conditions acceptable for us,” Muntiyan said. He categorically challenged some of the views that behind the achievement of agreements on gas discounts and a loan from the Russian Federation surrender of the national interests of Ukraine stood. "Some say that national interests were betrayed, surrendered. Nothing of the sort! Now we get a real opportunity to fulfill the IMF conditions and to negotiate on a loan to Ukraine on equal parity conditions," the Government's Commissioner said. Muntiyan reminded that one of main conditions for receiving the IMF loan was liquidation of subsidies in the energy sphere, which would lead to a sharp rise of gas prices for population. “There was a requirement for us to raise a gas price by 80% at the expense of population, by 40% over the first year. But the condition was unreal, because the population's solvency did not grow. And now, when the price for Russian gas reduced, in principle, it is easier to reach this prime cost,” he noted.In addition, according to the Government's Commissioner, agreements about a USD 15 billion credit from Russia with an immediate first tranche of USD 3 billion allowed Ukraine leveling its macroeconomic indexes. “And concretely, to fill its gold and currency reserves to more than USD 20 billion. Earlier, it was USD 17 billion, and now - USD 24 billion,” Muntiyan added.He noted that it resulted in improvement of the money and credit position of Ukraine. “In other words, we can speak on equal terms with the International Monetary Fund now, and on the conditions, which are much better now against they were before,” the Government's Commissioner noted.