KIEV, Ukraine, June 15 (UPI) -- Cuts in the budget for Ukraine's utility company Naftogaz might create a situation where household gas prices won't increase, the country's prime minister said.
Ukrainian Prime Minister Nikolai Azarov asked the International Monetary Fund to let Kiev put off an increase in household gas prices. The increase is one of the IMF conditions for a $15 billion loan to Kiev.
The economy of Ukraine was left in tatters by the global financial crisis that began in 2008. IMF conditions include raising household natural gas prices, raising the pension age and reducing the budget deficit.
The prime minister said the budget deficit for Naftogaz was cut considerably.
"Our goal is to continue cutting Naftogaz's budget deficit through better management, which will help us to pursue a more balanced approach and probably even do without it (the hikes)," he was quoted by Russia's state-run news agency RIA Novosti as saying.
Russian gas company Gazprom has pushed for a closer working relationship with Naftogaz. Moscow said that would allay some of the economic concerns of Kiev.
Russia transports 80 percent of its natural gas bound for European markets through Soviet-era pipelines in Ukraine.
