Christine Lagarde: Ukraine fails to meet the IMF requirements
As you may know, in March the International Monetary Fund Executive Board approved an Extended Arrangement under Extended Fund Facility of $ 17.5 billion for Ukraine. According to the official IMF press release 'the four-year extended arrangement will support immediate economic stabilization in Ukraine and a set of deep and wide-ranging policy reforms aimed at restoring robust growth over the medium term and improving living standards for the Ukrainian people'.
Time is creeping on, since March Ukraine has accurately received two IMF tranches, however, is still, so to say, not in a hurry to fulfill the IMF requirements in return. According to the IMF Managing Director Christine Lagarde, Kiev carries out the commitments but does not make it steadily and in full scale. And particularly it concerns the reforms in energy sector.
In the letter to the Prime Minister of Ukraine Arseniy Yatsenyuk, Ms. Christine Lagarde particularly recalls to the bilateral agreement between the IMF and Ukraine obligating the latter to carry out complete privatization of the company managing the transportation system of natural gas in Ukraine. Despite this requirement on behalf of the IMF considered to be critical, the currently acting legislation of Ukraine still allows the state to keep the controlling block of stock of the company.
Ukraine's gas transportation system is without exaggeration a key element of European energy security and natural gas supply. That's why it should be controlled by advanced private investors, not by corrupt officials. If Ukraine wants keep receiving international aid, it must completely and strictly meet its obligations, from A to Z!