Russia returns to price controls
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.RUSSIA'S Prime Minister, Viktor Chernomyrdin, has reimposed price controls on essential goods, backing away from his predecessor's radical free-market line.
His decree, announced yesterday by the Itar-Tass news agency, is Mr Chernomyrdin's first important policy move since taking office three weeks ago following the departure of Yegor Gaidar, a champion of unfettered market mechanisms. It comes a year after Mr Gaidar ordered prices freed and suggests a significant shift in Russia's attempt to curb inflation and calm growing public anger over economic hardship.
By the end of last year, inflation was around 25 per cent a month with the annual total estimated at more than 2,000 per cent.
A former energy industry bureaucrat, Mr Chernomyrdin is regarded as an efficient manager but far more sceptical than Mr Gaidar on the merits of a rapid transition towards the marketplace. Long opposed to any freeing of oil prices, he has sharply increased credits to the energy sector since taking office.
According to Itar-Tass, Mr Chernomyrdin aims to 'curb inflationary processes and unjustified growth in the prices for certain staple foodstuffs, consumer goods and services'. Profits will be limited to between 10 and 25 per cent of the value of sales.
Goods under 'complete state control' include basic foodstuffs such as bread, tea, salt, sugar, milk, butter, spirits and sausages, as well as some raw materials.
But Mr Chernomyrdin has made no move against his predecessor's other main reformist policy, a massive programme of privatisation, launched last month. Interfax news agency reported yesterday that President Boris Yeltsin had ordered the coal industry privatised by the end of March. Firms to be sold off include 19 mines.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments