Trutnev urged to contain the prices of fertilizers and fuel

The presidential envoy to the Far Eastern Federal District also said that local production will fully satisfy the demand of Russian agricultural producers during the sowing season, and in some cases, prices for fuel and fertilizers can even be reduced

Russian producers of fertilizers and fuel need to conclude agreements with the government on price containment, proposed Deputy Prime Minister, presidential envoy to the Far Eastern Federal District Yuri Trutnev at a meeting in Vladivostok, RIA Novosti reports.

“It is necessary to conclude an agreement with large manufacturing companies, where they will assume obligations to limit price increases during the year. It is possible to bring together producers of fertilizers and producers of fuel, and with such a triumvirate decide that there should be no sharp rise in prices. We also agreed on this with the Ministry of Industry, the Ministry of Agriculture,” — he said.

The Deputy Prime Minister noted that now the volume of Russian production of fertilizers and fuel makes it possible to fully satisfy the needs of agriculture. “[Production volume] keeps prices at the required level. In some cases, it is even possible to reduce them. As far as food production is concerned, the preparation for the sowing campaign, the presence of normal prices for fuel and fertilizers, is the basis. This must be ensured and ensure that all prices in the consumer market are stable,— Trutnev pointed out.

The Deputy Prime Minister acknowledged that in Primorye there is a dynamic increase in prices for a number of food items, but an agreement will be concluded with large producers so that they limit price increases during the year .

Also, according to Trutnev, within two to three days, the Ministry of Agriculture will publish data on how much food is produced and how much is consumed, “to relieve citizens of concern that something may not be enough.”

Against the backdrop of Western sanctions, the Central Bank decided to record a key rate hike & mdash; up to 20%. Since then, owners of independent gas station chains have speculated that retail gasoline prices will rise soon, as such chains usually purchase fuel with credit funds. According to Dmitry Golub, the owner of a network of gas stations in Tula, banks warned his company about an increase in the rate on current loans to 25% per annum. “We are not able to shift these costs into the current price of fuel”, — he told RBC.

At the same time, the Federal Antimonopoly Service announced the prerequisites for reducing retail prices for gasoline in Russia after the fall in wholesale prices. “Currently, wholesale fuel prices are falling, logistics have not changed, volumes are sufficient. There are prerequisites for lowering retail prices,»,— said on March 10 the head of the service, Maxim Shaskolsky.

A similar situation has developed in the Russian fertilizer market. According to Reuters, Russia accounts for 13% of global fertilizer production. The country produces potash, phosphorus and nitrogen-containing fertilizers — basic for agricultural crops.

Even in October last year, Russian President Vladimir Putin warned that rising energy prices in Europe could lead to a halt in fertilizer production and higher prices for them. In this regard, he instructed the government to develop measures to neutralize the negative consequences, including “destabilization of the markets for nitrogen fertilizers, metallurgical products and food.”

In early March, the Ministry of Industry and Trade announced that due to problems with the supply of Russian fertilizers abroad, the global market will face a shortage.

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