Ukraine political rivals locked in bitter dispute over gas tariffs hike

Ukraine political rivals locked in bitter dispute over gas tariffs hike
Former prime minister and the leader of the Batkivshchyna (Fatherland) party Yulia Tymoshenko / Tymoshenko site
By bne IntelliNews October 23, 2018

Ukraine's opposition leader, former prime minister and the leader of the Batkivshchyna (Fatherland) party Yulia Tymoshenko has urged the chairman of the nation's parliament Chairman Andriy Parubiy to convene an extraordinary session of parliament with the aim of preventing a 23.5% hike to domestic gas tariffs.

"We demand a resolution on a moratorium on tariff increases, which can ban the government from making further unlawful decisions," Batkivshchyna said in a statement published on October 22. "Under the constitution, such an extraordinary meeting of parliament can be convened by the speaker or 150 lawmakers."

The move immediately followed an agreement between Kyiv and its main donor, the International Monetary Fund (IMF) over a new 14-month stand-by programme of $3.9bn. The increase in gas tariffs was a key element of the new deal. The programme will replace the arrangement under the Extended Fund Facility (EFF) agreed March 2015. Ukraine has received $8.4bn from the IMF so far under the multinational lender's EFF.

According to Batkivshchyna's statement, the party counts on the support of all concerned MPs, who believe that the decision of the Ukrainian cabinet to increase tariffs should be stopped, and utility tariffs should be brought to a “reasonable” level.

Three days early, Tymoshenko urged the nation's MPs of all levels to immediately call extraordinary sessions across the country with the aim to oppose the introduction of an increase of 23.5% in natural gas rates for the population.

Tymoshenko said that, considering the production costs, unearned income, transportation, and taxes, the price of Ukrainian natural gas should not exceed $80-$90 for 1,000 cubic meters. For instance, Kazakhstan produces enough natural gas and sells it to its residents at a rate of $92 per 1,000 cubic meters, according to Interfax news agency.

Responding to this criticism, President Petro Poroshenko urged on October 23 not to trust populists who promise to reduce gas prices. "The promises of populists to cheapen the gas prices two-, three-, four-, six-times can be made only with the return to Russian gas bondage," Poroshenko's media office quoted him as saying during a meeting with the Accounting Chamber of Ukraine.

Tymoshenko and Poroshenko are the main political rivals in the 2019 presidential and parliamentary elections in the war-torn country.

"We have just got out of this [gas] slavery, and they are trying to bring us back there," Poroshenko added. "I will not allow to bring the country back to the so-called 'Russian world in any circumstances. My advice is not to listen to sweet voices of pseudo defenders. Why? Because there is a lot of honey and not much truth there, or even no truth at all."

According to the president, the political forces, which protect ordinary people today in the loudest manner "have taken loans the most" in the past. "$54bn dollars is the total debt inherited from today's 'fighters for the truth' in 2007-2013, when the relevant political forces had power. Now, someone has to clean after them, I mean give money back," Poroshenko said, hinting at Tymoshenko.

 

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