Ukraine to hike gas prices by 50%

Kiev - Ukraine is raising the price of gas for domestic consumers by more than 50% from May 1 and will implement further rises under a fixed timetable until 2018, an official of state energy company Naftogaz said on Wednesday.

The step, which will be widely unpopular with ordinary Ukrainians who have grown used to subsidised gas prices from the Soviet era, were taken in response to demands by the International Monetary Fund.

The interim government of Arseny Yatseniuk is in the final stages of talks with the Fund to secure $15-20bn in a new aid package.