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IMF warns Ukraine against using state controls over natural gas prices
Journal Staff Report

KYIV, March 30 - The return to control over natural gas prices is not only an extremely ineffective way of subsidizing households, but also leads to abuse of resources due to corruption and curbing the implementation of energy efficiency, IMF Resident Representative in Ukraine Goesta Ljungman has said.

"There is - and there will be - a substantial part of the Ukrainian population who cannot cover the cost of gas, heat, hot water and electricity. The most efficient way to support those households is to identify them and provide them with financial support through the budget so that they can pay their utility bills. This instrument for support exists in the form of the Household Utility Subsidy program. We support this program," he said in an exclusive interview with Interfax-Ukraine.




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