A pilot project for
the abolition of state regulation of prices for food is part of the anti-corruption
policy and will allow overcoming one of the instruments of pressure on
business. This was stated by Prime Minister of Ukraine Volodymyr Groysman
during a meeting with journalists on Friday.
"We are removing
another barrier, which has always been a tool for pressure on business in the
retail trade network", said Volodymyr Groysman, while commenting on the
adoption by the Cabinet of Ministers of a pilot project for the termination of
state regulation of prices for foodstuffs, which will begin October 1, 2016 and
will end on 1 January, 2017.
According to the
Prime Minister, price controls for food was just one more source of gain for
corrupt officials who went shopping networks and demanded a bribe.
The decision to
cancel government regulation of prices for products was introduced as the pilot
project for three months to observe the market response. "I am confident
that the situation will be normal. If there are volatilities, I would ask not
to confuse them with seasonal fluctuations", said the Head of Government.
Commenting on the
likelihood of higher prices for foodstuffs following such decision of the
Government, Volodymyr Groysman emphasized: "I would like to look into the
eyes of these experts. If there is any growth, it may just be certain seasonal
fluctuations. Now analytical data shows that this season won’t see any wide
He gave certain
numbers, which shows that when prices for food are controlled, they are higher
than when the prices are not regulated.
The decision on the
regulation of prices for food products had been approved in the mid 90-ies and changed
in 2007, added Volodymyr Groysman.