Page 48 - RusRPTMay21

Despite being the government’s point person for preventing the rise in essential food prices, Reshetnikov’s quibbles about the CBR’s conservative monetary policy are not surprising. Russia’s economy ministry is responsible for spurring economic growth, and thus it often favors more dovish monetary conditions. Reshetnikov’s predecessor Maxim Oreshkin was similarly outspoken about attributing Russia’s sluggish growth to CBR policy. It’s easy to blame someone else for not hitting your targets.
Regarding food prices, Reshetnikov has expanded the government’s arsenal for tamping down on inflation. In line with what BMB discussed last Thursday, the government has officially extended its price control agreements with sugar and sunflower oil producers. Price ceilings on sugar will stretch until June 1, and on sunflower oil until October 1.
Yet counter to the hopes of oil producers, the government said it may also to impose export duties on sunflower oil starting September 1. A 30% duty on sunflower seed exports have been in place since January, which Reshetnikov announced will be extended indefinitely past its original end date of July 1. The head of Russia’s Fat and Oil Union suspects the government may increase the sunflower seed export duty to 50%. While the price controls are painful for producers, the export duties are “catastrophic,” he says.
48 RUSSIA Country Report May 2021 www.intellinews.com