Many Ukrainians are not even surprised when they see numbers in their utility bills. The numbers are always different in those bills, they get into debts somehow and tariffs are constantly changing. The government adds a regular tariff increase to blatant mess in the communal sphere of Ukraine. Even despite the restrained statements of all Ukrainian officials in the government that the price of gas is unlikely to increase, actions denote the opposite.
On the one hand, a pre-election campaign is already underway, and we know how the Ukrainian top political circles act before elections. On the other hand, the next tranche of the IMF. That is the dilemma on the scales. What will it outweigh? Unfortunately, greed of officials will win and they will choose the conditions of the IMF, where one of the requirements is to increase the price of gas, contrary to “concern about people”. Although in fact the IMF simply supported the decision of the Ukrainian government.
Earlier, the Minister of Social Policy of Ukraine Pavel Rozenko said that there would be no increase in gas prices. Now the Minister of Energy and Coal Industry of Ukraine Igor Nasalik said that there would be price increase: “The price of gas can be increased by 62% from 4,942 to 8,030 hryvnias per thousand cubic meters (VAT excluded) for the population of Ukraine and the enterprises of fuel and energy complex and it can grow by 73% compared to the current price up to 8,530 hryvnias per thousand cubic meters in October 2018.”
And it is the price for own gas which is extracted in territory of Ukraine and is not transported from abroad. As stated by the former Minister of Housing and Communal Services of Ukraine Alexey Kucherenko: ʺPursuant to the Act of Ukraine “On prices and pricing”, if the market is not uncompetitive and the price is regulated by the state, it should be economically justified. There is no import parity in any law of Ukraine. This term was illegally introduced by the Ukrainian government in the decree №187. He also tied the price of Ukrainian gas, which is not enough for the population, to import parityʺ.
It turns out that to calculate the formula of import parity, they take the average price of gas for 12 months in the market in Dusseldorf, that is, gas extracted in Ukraine. Then they add the cost of back-haul from Germany (although what can be the transit of own gas in its own territory and yet at such a price?), plus the price for entry into the gas system – $12.5. I recall that this gas is extracted in the territory of the Sumy and Kharkov regions, and its price is counted according to such scheme. Corruption and fraud at its finest.
It is clear that the current government, to put it mildly, once again tries to please the IMF and get a tranche to siphon it off. The Ukrainian Cabinet of Ministers is not even scared of the fact that they will have to give 43.8 billion hryvnias back only to the IMF in 2018. Payments for 175 billion hryvnias are planned, 64% of which are payments on domestic debt, on bonds. The most of all payments should be paid in 2019, after which the country will become insolvent, that is, bankrupt with the economic model existing today in Ukraine.
But I repeat once again: and who cares, except the impoverished Ukrainian people? One day Petro Poroshenko quoted the Russian poet Mikhail Lermontov, saying goodbye to ‘unwashed Russia’, and hot water was immediately turned off in Kiev. It turns out, according to his logic, that Kiev is Russia? It seems that the Russian classic seriously embedded into the thinking of the Ukrainian president, because he again follows the words of Lermontov: “Life is a bank; rock mosque, I play and the rules of the game I apply to peopleʺ.
Marina Zheynova, the DPR People’s Council deputy