Photo from UNIAN
The Ukrainian government seeks to cease regulating prices for socially important food products, according to draft resolution of the Cabinet of Ministers, announced by the Ministry of Economic Development and Trade (MEDT) of Ukraine February 28, according to Deutsche Welle.
The draft resolution, which requires Parliament approval, is expected to be adopted at a Cabinet meeting, Deutsche Welle reports.
Over 20 years ago, the government introduced state regulation of prices for 15 categories of foodstuffs. These include flour, bread and bakery products, pasta, cereals, rice, beef and pork, poultry, chicken, boiled sausage cow's milk, butter and sunflower oil, cheese, eggs, sugar, and vegetables. Producers' margin on these products could not exceed 15%.
Read alsoPrice deregulation experiment justified, to be continued – PMThe MEDT explains the lifting of this norm with the fact that the existing price regulation has proved ineffective. The ministry came to this conclusion after a three-month pilot project on the temporary suspension of the state price regulation. "According to the results of monitoring, the inefficiency was practically proved of the establishment of profitability ratios from 2% to 15% depending on the region and type of product," the ministry told Deutsche Welle.
Ukrainian Prime Minister Volodymyr Groysman supported the move. "We remove the barrier, which has always been an instrument of pressure on retail networks. This is an anticorruption step, which will be positively met by the business," he said at the beginning of the experiment.