Belarusian govt signs decree on new price regulation system

MINSK. Oct 20 (Interfax) - The Belarusian government has signed a decree on a new price regulation system, the government press service said on Wednesday.

"Price regulation on all consumer goods, both domestic and imported, is introduced in line with the new system," the report said.

The system envisages that producers must coordinate the growth of their prices with public authorities, regional executive committees and the Minsk City Executive Committee. Importers and traders must set the added value ceiling regardless of the number of intermediaries. Prices for leftovers must be brought in compliance with the decree within five days.

The document also restricts barter deals. Such transactions are now subject to the approval of public authorities.

The decree prohibits paying bonuses and other remuneration for product promotion.

"In order to ensure compliance with the decree, relevant public authorities are given additional powers of controlling the observance of laws on prices and pricing," the press service said.

According to earlier reports, Lukashenko signed an order on the unacceptability of price increases after a meeting on the price situation in Belarus on October 6. The document, which prohibits price hikes and introduces obligations for the unconditional supply of goods and services to the domestic market, was adopted "for the purpose of immediate and tough reaction to the current situation on the consumer market."

The document also envisages liability for the improper fulfilment of the order. The document empowers the Prosecutor General's Office and the State Control Committee to take measures of procedural compulsion, including imprisonment, for violations of the order. The document says that "people guilty of non-fulfilment or improper fulfilment of the order bear liability, including criminal."

The order instructs the government to approve and introduce a system of price regulation and ensure effective control over price discipline by October 20.

On October 6, the Belarusian government declared an unlimited moratorium on price hikes for companies. The moratorium is effective "until a special decision of the Council of Ministers" is made, the government decree published on the Belarusian national website of legal information said.