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 RUSSIA IN FACTS
02 February 2004 12:45
Putin rebukes government over failure to stem rise in grain prices
[Presenter] The state of the grain market in Russia was discussed at a conference attended by the president and members of the government today. [President] Vladimir Putin drew attention to the sharp rise in the price of bread. According to Agriculture Minister Aleksey Gordeyev, measures are already being taken to bring prices down. [Putin] One of the most acute current issues is the rise in grain prices in the country. We talked about this last year. We thought that this kind of increase was possible and said that it was essential to take urgent measures on this. However, these matters were not resolved as a matter of urgency. I would like to listen to what Aleksey Gordeyev has to say about what has been done in the most recent period. [Gordeyev] As of 15 January the decision taken by the government in December on limiting exports of food grain, both wheat and rye, came into force. Then, last week, on Friday [30 January], we passed government resolution No 44 on the start of commodity intervention, that is, 1.6m tonnes of food grain. Grain prices will be approximately 25 per cent lower than on the market. I believe that this package of measures will make it possible fully to stabilize the situation with the price of bread. [Putin] But you have to react as a matter of urgency to what is happening on the market. Do you how much it has gone up in certain regions - twofold. [Presenter] Then the president asked the cabinet of ministers to return to the topic of the provision of social facilities in rural areas and small towns in Russia. He said there would be a serious conversation on this problem this week. [Putin] One of the main priorities for this year is interbudgetary relations, bearing in mind the package of laws on demarcating powers between the regions of the federation, the federal centre and the municipalities. You know that the documents are currently at the State Duma, but a lot still remains to be done for them to be finalized in such a way as to satisfy the federal centre, the regions and the municipalities. So we will return to this issue again this week, and I would ask the government to keep focusing on this problem at the highest level. [Presenter] Another topic at the conference was the stabilization fund. According to Finance Minister Aleksey Kudrin, the fund has already started to function in real terms. Last week, R106.03bn was paid into the fund, which has been registered in the federal budget as a separate item for the first time this year.
[RTR Russia TV]
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