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Today's paper. Last Updated: 06/01/2012

Ukraine Set to Mull Price Surge

KIEV -- The leadership of the conservative Ukrainian parliament said Tuesday it was calling an early session to discuss a dramatic surge in prices triggered by the government's moves toward a free market.


Parliament's press service said the session, originally scheduled for Nov. 9, would open Nov. 4 instead.


"The decision to move the session up is caused by the deputies' concern over the situation that arose after the liberalization of prices," said Mykola Hotsky, a parliamentary spokesman.


The parliament had given its general approval to the radical market reform plan proposed by President Leonid Kuchma and blessed by the West, but Tuesday's decision seemed to indicate battles ahead.


Last week the government, following Kuchma's program, freed some prices and cut subsidies to producers. It also scrapped an artificial exchange rate for the karbovanets currency.


On Tuesday, prices for communal services, rent, public transport and natural gas went up sevenfold.


Food prices rose as well, but the level of increases varied from area to area. The government had previously announced that bread prices would increase, but remain under the control of state and regional authorities.


In the Donetsk mining region, the cost of bread and dairy products tripled, while in some other regions the price of bread remained unchanged.


In Kiev most bakeries asked the old prices, but in some of the city's districts people were reporting fourfold increases.


The government has doubled state salaries, pensions and students grants, but it did not appear enough to compensate for the price rises.


Nevertheless most Ukrainians took the blow stoically, and there were no public protests. "We are used to such things, but I feel sorry for people on low incomes," said Petro, a taxi driver.


About 15 million of Ukraine's 53 million people are living on pensions.


In some regions, the decision to hold bread prices steady appeared aimed at avoiding mass protests on Nov. 7, the anniversary of the Bolshevik Revolution. Communist rallies are scheduled in many cities for that day.


Leonid Grach, communist leader in the rebellious, Russian-dominated Crimea, said his party was getting ready to organize a political strike.


Nov. 1 was the deadline given by the Ukrainian parliament to the Crimean legislature to amend its constitution, which Kiev considers secessionist.


But the Crimean parliament will open its full session only on Wednesday. Several senior deputies have indicated they will reject the ultimatum, but could offer a partial compromise.




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