ESMAP Support Helps Ukraine Reform its Subsidies


Ukraine's cost of gas supply was among the highest in Europe. Subsidies were benefiting richer households while quality of services was deteriorating. ESMAP stepped in with an impact assessment of reforms and made specific recommendations to the government. It also promoted a public communications campaign to mitigate potential resistance. As a result, Ukraine increased tariffs, improved the financial viability of the gas sector and increased the number of poor beneficiaries receiving subsidies from 1 million to 6.5 million.



ESMAP. 2017. Energy Subsidy Reform Facility Country Brief: Ukraine. ESMAP Brief. Washington, D.C. : World Bank Group.