Investigations of grocery stores across Russia that were ordered by the prosecutor general have revealed unjustified price increases following a ban on imported foods adopted in response to western sanctions.
Prosecutors in the Samara region found that between August and December 2014, the price of cabbage, cucumbers and peppers increased by 353%, 544% and 654%, respectively, the newspaper RBC Daily reported. The Russian staple buckwheat, which is often used as a kind of social barometer as consumers tend to stockpile it in anticipation of hard times, rose by 276%.
The upward trend has continued this month, with prices for tomatoes, carrots and grapes in the region increasing by 26%, 58% and 85% in the first three weeks of January.
Prices began to rise across Russia following a ban on most food imports from the EU, US, Australia, Canada and Norway, which president Vladimir Putin ordered in August in response to western sanctions over Russia’s role in the Ukraine crisis. In big cities like Moscow, up to three-quarters of food was estimated to be imported.
Sanctions and a fall in worldwide oil prices caused the rouble to lose about half its value in 2014, sending inflation soaring to 11.4% in December and further exacerbating customers’ pain at the grocery store checkout.
But some retailers apparently took advantage of shared economic woes to make an even tidier profit. In response to reports of speculation, the prosecutor general, Yury Chaika, in January ordered checks of price tags for socially significant goods and other documents at retail chains in all regions of Russia. Although price rises in Samara were especially egregious, an investigation in the Bryansk region found that several big retailers there had marked up products even though suppliers had not increased their prices.
The Samara prosecutor filed a complaint with the regional branch of the federal anti-monopoly service over price increases, while in Bryansk and other regions stores lowered their prices after checks by prosecutors, RBC Daily reported.
Law enforcement authorities in Tatarstan and Udmurtia are investigating at least two retail chains for price-fixing after they significantly upped the cost of eggs, sugar, cabbage and other products at the same time, according to a press release by the regional prosecutor.
Prosecutors also reportedly found Spanish jamón, Scandinavian seafood and American chicken, all of which are forbidden under the food import ban – in stores in Rostov-on-Don.
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