There is no strict administrative regulation of food prices in Russia. This was stated by the leaders of the financial and economic bloc in the Russian government at the St. Petersburg International Economic Forum.

Minister of Finance Anton Siluanov stressed that in the food market the company uses regular market mechanisms without "rigid administrative pricing".

"Everyone talks about administrative price regulation. Are we forcing producers to sell products at some price? If an agricultural producer used to receive a subsidy for exports and chased everything for export, and the products rose in price, it means we have to abolish subsidies. Or give them on condition that the producer agrees to sell them in (price) corridors - we only act in this way. Or export duties or a damper. These are normal market mechanisms," Siluanov said.

"There is no such thing that we say that tomorrow the shops will sell bread only for 100 rubles. So we should not overheat this situation here. Yes, it worries us - the situation with high prices worries us. But there are many market instruments we are working with," he added.

Russian Minister of Economic Development Maxim Reshetnikov holds a similar opinion.

"The issue of price regulation is probably the most pressing in recent times. We have practically moved away from administrative measures, but this does not mean that we do not negotiate with some industry organizations," the minister said.

He also noted the importance of flexible export duty mechanisms, dampers. "They are designed to reduce the impact of external price fluctuations. We make decisions very carefully. We carefully consider the balances in order not to reduce in any case the attractiveness of investment in agriculture, so it would be attractive for producers and exporters, and of course to protect consumers, "- said Reshetnikov.

St. Petersburg international economic forum takes place from June 2 to 5. This year the theme is "Together again. Economy of new reality". The event is organized by Roscongress Foundation.

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Author: Maria Buzanakova