Friday, 23 December 2016

Ukraine signs a Memorandum to prevent speculation with food prices

Yesterday Ukraine’s Minister of Agriculture, Taras Kutoviy, along with the head of the Antimonopoly Committee and head of State Service on food safety and consumer protection signed a Memorandum of Cooperation, which among other things, aims to protect consumers from food price hikes.

Ukraine’s slow move towards a free market economy recently included a trial abolition of direct state regulation on prices for basic foodstuffs which simplified business but left consumers exposed to food price increases either by market economics or unfair competition.

The memorandum was signed in response to these concerns and time will tell if they have just swapped one set of archaic legislation for another with no real change.

Initial comments from the Minister are not particularly positive, “we have to solve problems of ​​price controls and unfair competition and ensure quality goods and services at a reasonable price".

Question is, who decides what is a reasonable price?