KIEV, June 20 – Ukraine needs to secure approval from the International Monetary Fund to increase the capital of Naftogaz Ukrayiny, a state energy company struggling to pay for Russian natural gas imports, an official said.

Prime Minister Yulia Tymoshenko seeks to boost Naftogaz capital by 18 billion hryvnias as an emergency measure to improve the company’s liquidity. But the transaction would widen budget deficit and that’s why the IMF may object it.