KIEV, Feb. 18 - Ukraine and the International Monetary Fund have agreed on an increase in gas rates by 280% and heating tariffs by 66%, National Bank of Ukraine Governor Valeriya Gontareva said at the 11th investment conference arranged by Dragon Capital in Kiev on Wednesday.

"Under our program with the IMF, the tariff hikes will be very sharp now – gas rates [will skyrocket] 280% and heat tariffs [will soar] 66%," she said. In connection with the increased rates, inflation is expected at 25-26% by the end of 2015, she added.