KIEV, Feb. 15 – The mission of the International Monetary Fund in Ukraine has agreed to a more gradual schedule of gas tariff increases to help cushion the impact on households, and work is currently underway to identify offsetting budgetary measures to support the combined (general government and Naftogaz) deficit of 3.5% of GDP for 2011.

"Discussions with the authorities regarding these measures will continue in the coming weeks, with the aim of bringing the second review under the SBA to the Fund's Executive Board," IMF Mission Chief for Ukraine Thanos Arvanitis said in a statement on Tuesday following the mission's two-week working visit to Kiev.