In 2027, Ukraine may begin the process of gradually raising electricity and gas rates for households after developing appropriate protection programs.
This is stated in the updated memorandum on Ukraine’s economic and financial policies under the Extended Fund Facility (EFF) program with the International Monetary Fund (IMF), following the results of its first review.
“The government has committed to conducting an assessment by the end of February 2027 of utility support programs aimed at protecting vulnerable households. Once appropriate protection programs have been developed, household tariffs should be gradually increased—this process can begin in 2027,” the document’s authors state.
According to the text of the memorandum, the goal of this process is to meet the needs for recovery and debt reduction in the energy sector, while full price liberalization will eventually be necessary to attract post-war investment.
“The Ukrainian government (IF-U) emphasized that tariff increases should occur only after an assessment and, if necessary, reform of existing social protection systems,” the authors of the document noted, among other things.
It is noted that large-scale quasi-fiscal measures in the energy sector and the existing tariff structure pose serious risks to investment, reconstruction, and the development of a stable energy supply and power grid.
According to preliminary expert estimates—which will be refined during future technical assistance—fixed energy tariffs that are below market rates—in particular, due to moratoriums imposed since the start of the war—cost at least 2.2% of GDP annually in the form of off-target subsidies resulting from the quasi-fiscal activities of state-owned energy enterprises, while targeted transfers for public utilities account for about 0.6% of GDP in the budget.
“Significant fiscal risks arise from fixed utility rates for households, which currently amount to about 55% of comparable supply contracts,” the document states.
As a result, the energy sector is increasingly relying on in-kind contributions, grants, and preferential financing to meet its needs for repairs and imports. For example, Naftogaz took on additional debt to finance repairs and imports, causing its debt to rise by 63% year-over-year in 2025. The government is currently seeking donor support to ensure the timely completion of necessary repair work and the implementation of plans to strengthen resilience, the authors of the document noted.
Ukrainian farmers received over 137 million UAH in government aid for maintaining breeding herds of goats and sheep as part of the second phase of the first stage of the program to support the development of livestock farming and agricultural processing, according to a press release from the Ministry of Agrarian Policy and Food.
According to the report, in July, 536 farms and other agricultural producers received funds through the Ukrainian State Fund for Support of Farming Enterprises.
Support is provided to producers who maintain between 5 and 500 breeding goats and/or sheep. The budget subsidy amounts to 2,000 UAH per head.
The Ministry noted that the funds are intended to help agricultural producers maintain their herds, support economic activity in rural communities, and contribute to the recovery of sheep and goat farming, whose herds, according to the Ministry, have declined by nearly 30% compared to the pre-war period.
The program is funded as part of the World Bank’s ARISE project, aimed at revitalizing Ukraine’s agricultural sector.
Applications can be submitted through the State Agrarian Register (DAR).
As previously reported, in February, agricultural producers submitted 1,621 applications through the State Agrarian Register (DAR) within two days to receive subsidies for maintaining goats and sheep, totaling 203.6 million UAH.
In June, as part of the first phase of the program for the development of livestock farming and agricultural processing, farmers received over 93 million UAH in state support for maintaining breeding herds of goats and sheep.
According to Serbian Economist, the Serbian government has adopted a new resolution on financial support for domestic hoteliers, which provides, in particular, subsidies of up to €5 million for cooperation projects with international hotel brands.
The measure is aimed at improving the quality of hotel offerings and increasing tourism revenues, including by extending the tourist season.
Grants may be awarded to companies and entrepreneurs registered to operate in the hotel business and listed in the e-Turista system, as well as investors planning to build new facilities.
It is noted that in order to receive support, the applicant must have a franchise agreement with an international hotel chain or at least a letter of intent confirming future cooperation. The accommodation facility must be categorized as at least four stars. In the document, an international chain is defined as a legal entity that manages at least 50 hotels and operates in at least 10 countries on at least two continents.
The subsidy is provided on a non-repayable basis, with a maximum amount of €5 million per investment project. The list of eligible expenses includes franchise and branding fees, digital integration, and staff training. There is also a requirement that the property purchased with the support must be new, and the investor is obliged to ensure the continuous operation of the hotel in the declared category for at least five years from the date of opening.
Applications will be submitted after the announcement of a public selection process, and the decision on the allocation of funds will be made by a special working group based, in particular, on the business reputation and economic sustainability of the project. Recipients must regularly report to the relevant ministry on the use of funds and provide documentation prepared by an auditing company with professional liability insurance; if the conditions are violated, the state will be able to demand the return of funds with interest.
