Meeting to discuss new price regulation system

Belarusian President Aleksandr Lukashenko convened a meeting on 28 February to discuss a new price regulation system.

“We have a very important topic on the agenda - a new price regulation system. I often called it a 'fair formula'. You were supposed to develop and submit it for consideration. It was a kind of homework for you. Let's see how you have coped with it. At first glance, now this matter seems not as relevant for Belarus as it was in 2022. Back then we saw an outright price bacchanalia. The President and others had to intervene and use an ultimatum to stop this arbitrariness. We put an end to it in the name of the revolution,” Aleksandr Lukashenko said. 

“Alarmists and skeptics shouted from the rooftops that the stores would be empty, go bankrupt and shut down, but this did not happen. And we did not only preserve the product assortment, but we also expanded it over time. And if something goes wrong somewhere, it is our fault. And there is no need to blame economy for this,” the head of state emphasized.

When inflation in the country started climbing, the President demanded coming to grips with prices. Without his tough stance and constant oversight, it would not have been possible to curb the inflation. “In fact, back then a comprehensive document was drafted (as the government calls it) to regulate the consumer market, and it went beyond pricing matters. Had it been a truly comprehensive document, there would not have been a barrage of complaints from manufacturers, sellers and others,” Aleksandr Lukashenko noted.

“I do not mean to say that those complainants who approach me and the authorities are absolutely right. No, I am down to earth. I understand what kind of people these complainants are. I started digging deeper: if you don’t have money to buy something, then find a job (prices in our country are the lowest in the world, they may not be as low as someone wants, but they are the lowest in the world). Get a second, third job. If they don’t hire you, let’s have a look at how you studied at school, what’s in your head. Today, employers will not hire just anyone like it was in Soviet times. They need people who can deliver. Therefore, stand in front of the mirror, look at yourself and ask yourself a question: will you be able to produce results? This is an unpopular position, but it is grounded in reality,” the head of state said.

As it has turned out, the strategy introduced by a directive in 2022 proved to be efficient in addressing its goals. According to statistics, in 2024 inflation was 5.2% although the projections put it at 6%. The year 2025 has also begun smoothly. “At the same time, we raise some prices by directive, like prices for housing and utility services, fuel, etc. We make sure that prices do not rise without permission from the authorities. By the way, they are some of the lowest in the CIS. Yet, we must keep in mind that our country does not have all the things that are needed along the production cycle to manufacture a product. We import more than half of the things that we need in order to produce and sell goods. We depend a lot on this [imports]. We cannot regulate inflation over there. And if they cannot sell us things at a lower price, we have to buy them at the price that they offer.”

Things do not look optimistic for some groups of products. “First of all, these are vegetables. Prices for them increase by 15-20% every winter. And what did the government promise me?” Aleksandr Lukashenko noted.

The President reminded: if there is a shortage of tomatoes and cucumbers on store shelves in the winter/spring period,  it is necessary to grow these vegetables in the right time and in the right amount.

“Let's build greenhouses, we can do it. It can be done very fast. Let's build them and we'll get more [products]. The government once told me: 'Let's put more light on cucumbers and tomatoes and they will grow by themselves.' Did they do it? Yes, they did, but on fifty hectares out of a thousand. Using light or not is your business. But there must be a result,” the Belarusian leader emphasized.

Aleksandr Lukashenko also drew attention to the prime cost of products. In his opinion, it remains high.

“Our costs are over the top and we work disgustingly. Let's take cucumbers and tomatoes, for example. Everyone is shouting: 'It's a loss-making business. We can't do it.' Has anyone come to grips with the costs? Has at least one governor got involved in this matter? I'm not even talking about [First Deputy Prime Minister Nikolai] Snopkov who was tasked with addressing this problem. Who sorted out the costs?” asked the head of state. “If an agricultural enterprise has a greenhouse and the prime cost is minus eight there, take a look at what they spend their money on, maybe there is some unnecessary spending. If so, then the manager should ride a horse, not drive a Mercedes.  Have you scrutinized what makes up such costs? Maybe this manager brings us all these baskets of products not only for holidays, but also for morning and evening meals? And do you think he spends his own money on it? No, it's all included in the prime cost and consequently in the final price of a product,” the President said.

The head of state explained that he was deliberately exaggerating things in order to show what can make up the cost of a product.

“Let's look at the prime cost of a cucumber, a tomato, and identify the enterprises that we should emulate (if we want to scale up their practices). It will not be the best in terms of profitability of production of cucumbers and tomatoes, but not the worst either. Then the worst will have to rise up to the level of average companies, and those who are above average will be okay. Who will tell me today what the prime cost of this cucumber and tomato is? No one. This is your job,” Aleksandr Lukashenko noted.

He demanded a report on the state of things in this field and on measures taken to ensure the availability of these vitamin-rich products for the population.

“I am not asking you to regulate imported exotic products like artichokes or avocados. Let these avocados cost as much as they cost. My job is to provide people with domestically produced vegetables and fruit. People should be able to afford staple foods like cabbage, onions, potatoes, carrots, apples,” Aleksandr Lukashenko demanded.

The President asked whether his instructions to create stabilization stocks to provide Belarusians with domestic fruits and vegetables during the off-season had been implemented. “You didn't do it and you'll answer for it,” he warned. “It turns out we don't have potatoes. How much has the price of potatoes gone up? How much the price increase was in the off-season? Can't we produce the right amount of potatoes, put them in the cellar and then sell them to people?”

The head of state tasked the State Control Committee to look into the matter and make suggestions. “These executives should be kicked out. We cannot produce enough potatoes! Prices for potatoes have jumped by 10% in two months,” Aleksandr Lukashenko said. 

Belarusian potatoes are not worse than imported varieties, the main thing is to ensure their proper storage, he noted. The President shared his personal experience: the potatoes grown on his farm are stored in a regular vegetable storage facility following the proper techniques, so they have not spoiled at all.

“You have set up a system where it is more profitable to import goods into the market than to sell our own. Isn't that chaos? What kind of regulation is this? It is corruption. Which importer did you want to favor? From Egypt, Russia, or Kazakhstan? Prove to me that they did not pay you under the table. I am not accusing you of taking bribes, but, excuse me, I have a suspicion,” the head of state said.

He recalled that vegetables should be stored in so-called stabilization stocks in the autumn so that they can be sold at regular prices during off-season.

Another issue to discuss was the construction of greenhouses to grow vegetables during off-seasons: “I am saying this because I have my own small greenhouse. I see how tomatoes and cucumbers grow. Cucumbers started growing a month ago. Tomatoes will ripen in a month or a month and a half. But those who do this professionally already have tomatoes ripened. Thus we can lower prices,” Aleksandr Lukashenko pointed out. “I planted these vegetables in the greenhouse to see if it is possible. It turns out it is. So why are you not doing it? What is wrong with you? Have you gotten too comfortable?"

The head of state said that before the meeting he had received a large package of documents, but it was not clear whether the government submitted an interim or final proposal. 

“Every day I asked Snopkov about this. Golovchenko said that this it was your main exam. People are watching us, they support us. We were all excited about the support we received in the last election. People have faith in us,” the President said. “Meanwhile, everyone in the government is inventing their own formulas and has their own ideas. The President has set a task and set a framework for you which you should stick to. After all we have a dictatorship. And this dictatorship is supported by the people. Get down to work!”

"There should be no harsh regulatory methods that could harm the economy. We should not excessively restrain producer prices. There should be proper profitability. Expenses must be reduced," Aleksandr Lukashenko stated.

He emphasized that expenses, such as purchasing new cars, should not be included in the cost of production, in other words, customers should not have to pay for such expenses. "If only it were about cars. Everyone comes and complains about the terms and conditions. We must put everyone on an equal footing: the country comes first," the President stressed. 

The head of state also shared proposals from private business: "Let's put strict restrictions on state-owned enterprises, and let private ones operate based on supply and demand. Earlier they asked me to put all enterprises on an equal footing. But now they do not like this: they want complete freedom, no regulations, and strict restrictions for state-owned enterprises. So what does private business really want? In the interests of the people, the requirements towards private companies should be as strict as towards state-owned ones," Aleksandr Lukashenko stressed.

“The role of the state from now on should be not to supervise, but to create clear-cut working conditions, common rules of behavior for all market participants. No one should come to you and ask you to regulate the price. Businessmen and manufacturers should set their own prices, but they should follow a certain track - a track of fairness. Have you worked it out?” Aleksandr Lukashenko asked.

“God forbid you to think that we can hold it until the new election, as it happens in other countries, and let it roll once the electoral campaign is over. It is capital punishment at once! I am warning you. No one will be allowed to fool people. I am personally responsible for this in the first place. Members of the government, governors will be held responsible in the second place,” the President said.

He agreed that this work requires a lot of effort and the matter is a complicated one. With the clear “supply and demand” scheme, however, everything will be simple. “It is a certain burden. Of course, it is much easier to do nothing. I will put it straight then: who cannot and do not want to do anything, leave your positions then. If you have no desire to work, then leave. I have not tied anyone down here. Today is the best moment to leave. There will not be backtracking, however,” the head of state said. “Almost all of us have come from rags. I definitely have. I know how ordinary people used to live. You are not ministerial children, either.”

“You haven't forgotten how ordinary people live, have you? Let us help them. Let us make those idling around work. I have made the corresponding instructions. I have given such orders. We have power in our hands. There is no need to talk about the European Union, the USA, Russia. We are no close to them. Russia, if it wants, will be the richest country. The USA can print as many dollars as they want. Europe is technologically advanced and well-built countries. Once normal leaders come, the European Union will work well. What should we do in this environment? Fight like in Ukraine? Everything starts with the economy. I am telling this for the 25th time already,” the Belarusian leader said.

The President has long ago instructed the government to develop a new fair pricing policy. However, what is meant by this fairness?

“First, for the consumer, the ordinary person, fairness lies in the absence of speculation and in a reasonable price for the final product. I'm not saying that should be no Gucci, Versace and so on. If you want it, you can buy imported goods. But we can produce a similar product,” Aleksandr Lukashenko said. “Second, for enterprises, for those who produce, fairness should take into account adequate profit. Profit is the price minus costs. If you want more profit, you should switch from a Mercedes to a local car. I am speaking a simple language here.”