UPDATE2: Min: Russia’s sunflower oil, sugar prices to fall by Dec 21

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MOSCOW, Dec 16 (PRIME) -- Prices for sunflower oil and sugar in Russia should be reduced during five days under the framework of price stabilization agreements, Agriculture Minister Dmitry Patrushev said Wednesday during the signing of the agreements.

“The (producer’s selling) price for sugar will be 36 rubles per kilogram, for sunflower oil – 95 rubles. These measures will be in effect until the end of the first quarter of 2021. In accordance with the provisions of the agreements, the price must be adjusted within five days from the date of signing. Along with this, according to our information, there is already a decrease (of prices),” Patrushev said.

The agreements are signed with key producers, which account for over 90% of the sugar market and over 85% of the sunflower oil market, the minister said. “In addition, retail chains, as well as industry unions and associations also act as sides (of the agreements). At the same time, the agreements encompass the possibility of further expansion of the participants,” he added.

The Industry and Trade Ministry said that the maximum retail prices for sugar will amount to 46 rubles per kilogram and for sunflower oil to 110 rubles per liter.

“The Russian Agriculture Ministry, the Russian Industry and Trade Ministry, the largest retail chains and food producers of the country, under instructions of Russian Prime Minister Mikhail Mishustin signed agreements to reduce and maintain prices for sugar and sunflower oil – the most important foodstuffs of prime necessity,” the statement said.

President Vladimir Putin earlier criticized the government for sugar, sunflower seed oil, bread and flour price surge saying it was an attempt to set the prices on the Russian market at a global level.

Prime Minister Mikhail Mishustin said on Wednesday that the Russian government plans to sign agreements to reduce sugar and sunflower seed oil prices later in the day.

Mishustin emphasized that the price control measures are temporary.

“I want to stress that all these measures to curb the prices are surely short-term. Do not be carried away and getting into a regulatory frenzy to avoid lower production or long-term investment because of the administrative regulations,” the prime minister said.

He added that the measures must be proportionate to the problem.

(73.4453 rubles – U.S. $1)

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