 The Kremlin has been accused of abandoning a commitment to market economics after it imposed Soviet-style price controls on basic food items in an attempt to shore up President Vladimir Putin's popularity. | Or an attempt to underline Vlad's accretion of absolute power, and a subtle hint that he can control the supply of food by fiat. |
The state's extraordinary intervention in the market has been seen as a pre-election manouevre to assuage growing discontent among Russia's poor over soaring food prices.| The socialists in the newsroom don't even recognize "From each according to his ability, to each according to Vladimir's whim." |
But analysts said that it also underscored the weakness of Russia's apparently mighty economy — an achievement for which Mr Putin has claimed credit to almost universal adulation among his people. The Kremlin tried to portray the controls, which will see prices frozen on staples such as bread and milk at their October 15 levels, as a voluntary and patriotic gesture undertaken by Russia's food producers and retailers.| "Yes, yes, tovarich, you are feeling mighty patriotic right about now, nyet? |
But analysts said that business leaders were coerced into making concessions that could do greater economic damage in the long term. "It is known for a fact that they were summoned to the Kremlin," said Masha Lipman, a political analyst at the Moscow Carnegie Centre. "It's easy to imagine the conversation. They were told to fix prices voluntarily — or else. And of course they will comply. Business in Russia always complies."
The cost of food has soared in Russia in recent months, with milk rising 9.2 per cent in September alone. In some regions, bread is reported to have doubled in price since the beginning of the year. |