IMF proposes raising gas and electricity tariffs for Ukrainians from 2027

The updated memorandum on cooperation between Ukraine and the International Monetary Fund provides for the possibility of a gradual increase in gas and electricity tariffs for the population.

Ukrainian media reported this.

“According to the fund’s assessment, this process could begin as early as 2027,” the document states.

The IMF expects that the funds raised from higher utility prices will go toward restoring energy infrastructure and reducing the debt of energy sector companies. In addition, the fund believes that rising tariffs will help reduce the volume of hidden budget subsidies.

At the same time, the memorandum stipulates a condition: before raising tariffs, a targeted social protection system for consumers must be established. In the long term, the IMF advocates full liberalization of energy prices.

In the previous version of the memorandum, Ukraine was required to prepare a plan for the gradual increase of tariffs by July of this year. The deadline for fulfilling this structural benchmark has been pushed back to the end of October.

Ukraine has had a moratorium on raising gas, hot water, and heating tariffs for the population since 2022 — until the end of martial law.