Russia has expressed concern about the emergence of an underground market of food producers following sanctions imposed by Western countries in retaliation for the invasion of Ukraine.
“The largest federal and regional supermarket chains have decided to minimize the risk of purchases by retailers of basic products,” the Russian Ministry of Trade and Industry said in a statement on Saturday.
“In several regions (…) these products were bought suddenly and on a large scale, more than necessary for personal use and for the purpose of resale,” the ministry added.
To prevent this practice from increasing, large retail chains have established restrictions on the quantity purchased per individual.
Russia can also cap the prices of around twenty staple foods, such as meat, fish, milk, flour or sugar, to stave off inflation. But, for now, the government has not pronounced itself in favor of this measure.
According to businessmen, the increase in prices is already a reality, although there are no statistical data that reflect inflation.
Speaking to Russian newspaper Kommersant, leaders in the bar and restaurant sector lamented the price hikes by their suppliers, and plan to meet with Moscow’s mayor on Wednesday.
The Russian Central Bank also prohibited financial institutions from not publishing their balance sheets from February onwards, a measure taken to “limit the risks of credit institutions in the face of sanctions”.
Economic sanctions against Russia have led to a devaluation of the ruble and the exit of several foreign suppliers from the market, which can increase inflation and the risk of shortages. The country’s middle class is already feeling the effects of the measures.
The local currency ended the week at 115 to the dollar in Moscow trading, down from 83 to the dollar last Friday, down more than 20%. Against the euro, it closed just below 119 per euro, down from 93 per euro at the end of last week. The currency reached a record low against the US currency on Thursday (3) and against the euro on Friday (3).
In addition to government sanctions, companies have cut ties with Russia. More than 60 companies have closed local operations, suspended negotiations with Russian companies or announced the withdrawal of direct investments in the country.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
