Volodymyr Groysman stands for the abolition of state regulation of prices for food as part of an anti-corruption policy

26.09.2016

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 fluctuations.

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.


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