Of all the main items that form the food basket the growth of meat prices, which are heavily dependent on imports, is the biggest cause of the Government's concern, the First Deputy Prime Minister said concluding the Commission's meeting. In his opinion, production of pork and poultry meat could be increased by 8% in 2009.
"During 2009 all the plans for the production of pork and poultry meat will be fulfilled, the credit resources will be made available and the investment projects implemented in 2007-2008 suggest that the production of pork and poultry meat can grow by 8%," Mr Shuvalov said.
Speaking about other food products, the First Deputy Prime Minister noted a slight change in the prices of buckwheat and pasta, but most of the prices were raised before the crisis set in. The prices for bread and dairy products have remained stable, he said.
Mr Shuvalov revealed that the Commission had also discussed the interest rates on loans to farmers. He said that the Government's anti-crisis plan provides for subsidising these rates. "The average rate today is 18%, and the situation is under control," he said.
Speaking about the prices of pharmaceuticals, Mr Shuvalov said that the Government might introduce mandatory registration of producers' prices of pharmaceuticals.
He said that elements of pharmaceuticals price regulation are already in place; for example, there exists a list of staple pharmaceuticals and the mechanism of state regulation of the maximum producer prices for them. "The Federal Tariffs Service should be empowered to cancel unlawful decisions of the regions to raise the prices of pharmaceuticals," the First Deputy Prime Minister said.
Mr Shuvalov does not rule out that the Government may, "in a contingency" buy into RUSAL and other major companies, but such decisions would only be taken after public discussion and on a case-by-case basis. "Entering the capital of companies will be an exceptional case, such decisions would pass through several public discussion mechanisms and will be reported to the country's leadership," Mr Shuvalov said.
"We do not rule out such a possibility, it is envisaged by the anti-crisis plan, but in every case it will be an exceptional measure," the First Deputy Prime Minister stressed.
Speaking about the Government's position on redemption of credits by RusAl and other major companies, Mr Shuvalov noted: "Our position is that all the debts must be paid back by the borrowers and if you have borrowed you must do everything to pay back. The investment climate and the extent to which Russia can be trusted depend on this."
However, the First Deputy Prime Minister noted that most of the borrowers were unable to service their credit agreements on the original terms. "Good-faith borrowers must negotiate with the creditors to offer a rehabilitation programme and to indicate how they will work with their markets in order to be able to repay the debts," Mr Shuvalov stressed.
"On the whole they are unable to redeem their debts on the initial terms. Consequently, it is necessary to negotiate the granting of the same credit resources on different terms," he believes. The Government for its part will support such negotiations, the First Deputy Prime Minister said. "If there is a need to hold a meeting with the creditors we are ready for this. If you need letters we are ready to provide such letters. But they will contain what I have just said and not a commitment to undertake all the debts," Mr Shuvalov said.
He added that the Government was in constant touch with the major corporations which have heavy debts: "We are in daily dialogue with all of them because they have large staffs which are uncertain about the future."