Food Industry News

In the Ukraine are preparing for the abolition of state regulation of prices

The Government of Ukraine approved a pilot project to abolish state regulation of prices for socially significant products. This is on Thursday, 22 September, UNIAN reports. The project will start on 1 October and last for three months.

According to the Minister of Economic Development and Trade of Ukraine Stepan Stepan Kubiv, the goal of the project - study the effectiveness of price regulation. It will be decided whether such measures, he added.

The decision to abolish state regulation will reduce the pressure on business and to abandon outdated administrative practices, said Stepan Kubiv.

Currently, the government of Ukraine intends to reduce the list of social products, and if possible at all to abandon the state regulation of food prices.

Earlier 22 September World Bank Director for Ukraine, Belarus and Moldova Satu Kahkonen said that the growth of the Ukrainian economy in the medium term will be three to four percent when accelerating the pace of reforms.

14 September the International Monetary Fund has decided to allocate Ukraine tranche of one billion dollars as part of a four-year program of assistance of more than 17 billion dollars. The condition for granting the loan was the adoption of Kiev commitments to reform the economy and state structure.

Socially important products in Ukraine include wheat flour of the highest grade, bread and bakery products from wheat and rye flour, pasta, cereals, rice, beef and pork (except boneless meat), poultry, chicken, cooked sausage, cow's milk, butter and sunflower, cottage cheese, chicken eggs, sugar and vegetables.

Just a list of products includes social 15 categories of goods, on which the government restricts the margin in the stores within 10-15 percent. For example, the price of a kilogram of buckwheat must not be higher than in the store 15 percent of the purchase price.

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