Gas price hike to raise tension in Ukraine

KIEV, Ukraine

Ukraine's trade unions warn that an abrupt price hike for natural gas will stoke social unrest and uncontrolled inflation.

Increasing gas prices was a key demand of the International Monetary Fund in exchange for this week's approval of a US$15 billion loan over 2 1/2 years to help Ukraine with economic reforms.

Anatoliy Akimochkin of Ukraine's Trade Unions Confederation pledged Thursday to sue the government over the 50 percent price hike to be imposed on households from August.

Ukraine's economy has been crippled after Russia has repeatedly raised gas prices following political disagreements. The two nations' disputes halted European gas deliveries in early 2009.