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. Last Updated: 07/27/2016

Directors Want Price Controls

Siberian factory bosses have called on the government to restore state controls on prices for fuel, transport and raw materials in a bid to stimulate production at their ailing firms, Itar-Tass said Thursday.

The news agency said the factory directors in the Novosibirsk area also said that local agricultural enterprises needed 270 billion rubles ($175 million) to fund the spring sowing campaign.

Russia freed most prices when it launched its economic reform program in January 1992, but the policy has been called into question after the resignation of two key reformers and the formation of a new government team.

Prime Minister Viktor Chernomyrdin has said the government may try to seek agreements with trade unions and producers to help hold back prices and wages temporarily as part of his effort to use "non-monetarist methods" to rein in inflation.

Russia's old official trade union network has gone into decline and a number of less-organized unions have emerged. But it is doubtful whether they exert the discipline that would be necessary to enforce a strict policy of wage and price restraint in the industrial sector.