OREANDA-NEWS. July 04, 2013. In the presence of Prime Minister of Ukraine Mykola Azarov there has been signed a Memorandum on understanding between regional executive authorities, bread producers and trade networks.

The document was inked on a newly-erected bread-baking complex in Kyiv region by leaders of Kharkiv, Poltava, Kyiv regions and Kyiv city.

“I wish to congratulate you on signing of such significant document which determines main principles of cooperation between representatives of authorities, in the person of heads of regional state administrations, heads of bread-baking complexes and food networks. The most significant principle laid in the Memorandum is preserving stable bread prices,” Mykola Azarov has said.

He reminded that over recent three years the Government had paid huge attention to ensuring price stability for foodstuffs.

“Preserving of macroeconomic stability in the country and price stability for the basic foods appear the principal demand of the President of Ukraine and the Government is realizing it,” Mykola Azarov emphasized.

The Head of Government noted that it proved possible to ensure normal prices for products, including baked goods, by means of building modern bread-baking complexes. “Building of up-to-date, largest bread-baking enterprise in Europe, in which expenses of energy carriers – power energy and gas per item of products - are fourfold less than in production of bread by old enterprises,” the Prime Minister stressed. At this he assured that the Government would support building of such modern complexes all around the country.

“It is extremely important that our people could have an opportunity to constantly and in a large variety buy baked goods at normal prices. We are not capable and will not control prices for fancy bread and expensive kinds of bread, but we have regulated and will continue regulating price-forming for social kinds of bread,” Mykola Azarov stressed. 

Pursuant to the Memo, the Ministry of Agrarian Policy assumes liability to ensure: forming of the state intervention fund; processing of grain and selling of flour to bread-baking complexes; drawing bread producers and trade networks to preparation of legislative acts, including in the part of the state regulating of bread prices.

Kyiv, Kharkiv and Poltava regions and municipal state administrations have to form regional resources of food grain for 2013-2014 and 2014-2015 marketing periods. Moreover, they have to facilitate purchase of flour produced from grain of the state intervention fund in the volumes necessary for preserving stable price situation. 

Producers assumed obligations to buy necessary amounts of grain (flour) in advance, not to afford raising of prices for bread and baked goods which are in the greater demand, not to afford shortening of volumes of production and to provide continuously consumers with bread and baked goods in necessary amounts and of proper quality.