Ukrainians to pay 50% more for cheaper Russian gas, opposition lawmakers decry

He reminded of the Kharkiv agreement which the regime declared as victory and which made it possible to get a 30% cut on the price of the Russian gas. Judging by the loud declarations of the president, premier and VP Tihipko, Ukraine will now have cheap Russian gas. This does not tally with the cabinet’s decision to raise gas prices by 50%, Yatseniuk said.

“If we really got a 30% discount on the price of gas, the Party of Regions should have supported the bill I tabled 2 months ago to cut the gas prices for low-income Ukrainians at least. They voted down my bill. I therefore assume that no discount was given to Ukraine, Obkom quotes Yatseniuk as saying.

According to Yatseniuk, Yanukovych is eager to get the $15 bln IMF credit to repay the short-term Russian credit the cabinet received earlier this year. It means, Yatseniuk continues, that the new regime is not different from its predecessor, although Yanukovych lambasted Yulia Tymoshenko for her borrowing program.

Instead of going ahead with reforms, Azarov opts for credits. Let’s call what’s happening by its proper name – raising gas prices is no reforms. Reforms are when the cabinet can accumulate revenue by creating a favorable playing field for businesses. Where is the much-trumpeted program of reforms? All their reforms have boiled down to asking for credits to repay old debts. The cabinet has made a very harsh decision with regard to the populace, 70% of which is poor people, Yatseniuk stressed.

Higher gas prices will trigger of hikes on utility tariffs like hot water and heating. This in turn will lead to a higher inflation, Yatseniuk warned.