Foodstuff prices in Ukraine might rise 2%-3% soon - deputy minister

MOSCOW. Feb 11 (Interfax) - Damage caused to Ukrainian energy infrastructure and the use of generators increase food production costs, and therefore, prices for food products could rise by another 2%-3% in the near future, Ukrainian media quoted First Deputy Economy, Environment, and Agriculture Minister Taras Vysotsky as saying.

"We can currently speak of projected price growth of around 2%-3% in the near future. The following situation will depend on several factors, such as energy supply stability, security, logistics, and the new season's harvest. There's no reason to talk about uncontrolled growth in prices for now, although some inflationary pressure persists," he said.

Commenting on the growing share of imported products in Ukrainian retail chains, Vysotsky attributed this to market factors, particularly adaptation of businesses and stabilization of the hryvnia exchange rate, rather than changes in market access conditions, which, he said, have remained the same since 2017. The dairy segment is particularly sensitive to EU imports due to low global prices and significant government subsidies paid to European farmers, he said.

"At the same time, we don't see any systemic threats for most of other product groups. A significant portion of imports are products that are not produced in Ukraine, such as citrus fruits, bananas, or ocean fish. Therefore, there is virtually no direct competition with Ukrainian producers in these segments," he said.