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RUSSIA'S ECONOMY

Deputy PM recognizes number of objective reasons for rise in food prices

The government will look at each specific case of rising food prices separately, Russian Deputy Prime Minister Arkady Dvorkovich said

MOSCOW.January19./TASS/. Russian Deputy Prime Minister Arkady Dvorkovich said he recognizes that there is a number of objective reasons for rise in food prices.

"Indeed, there are objective reasons, unfortunately, for accelerated growth of certain food items," said Dvorkovich on Monday, at the meeting with the United Russia fraction at the Duma.

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According to him, some of the reasons are connected with import. "There is a growth rate of foreign currency, dollar to ruble. Of course, the double growth rate leads to the increase in prices," Dvorkovich said.

The government will look at each specific case of rising food prices separately, he noted. The government is monitoring every particular type of foodstuffs, the vice-premier said, adding that the instances of buckwheat price hikes had been exposed. Flour and bread prices will continue to grow in the near future, Dvorkovich said.

"As far the as industry is concerned, there are three components, including the support for on-going activities. The Ministry of Industry has prepared a proposal to subsidize working capital," said Dvorkovich.

He also talked about the planned import substitution implementation programs. Such programs have either already been developed or are nearing completion and will be presented in the coming weeks. Dvorkovich also mentioned programs to support export, for which funds have already been allocated.

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