October 9, 2007 (LPAC)--Russian President Vladimir Putin took action yesterday following a cabinet meeting on rapid rising food price inflation. Following the meeting, which was on the Russian economy, the government implemented measures to curb dependence upon costly food imports, expand Russian food production, and increase duties to decrease grain exports. Putin demanded "no delays" on these measures.

The Russian Presidential website quotes Putin saying:

"Let's begin with the macroeconomic indicators and everything directly related to them--inflation and price rises. Rising prices, especially for some foodstuffs, are becoming a cause for concern." Economic minister Nabiullina stated that world agriculture prices were the reason that Russia had an overall increase in inflation in September; citing increased consumption from China and India, but also bio fuels and the abolition of subsidies. Russian Agriculture Minister Alexei Gordeyev told the press that Russia will lessen dependence on food imports, Itar Tass reported. Russia now imports 40% of its meat and 25% of its milk.

Capital inflows and increased gold and currency reserves are also feeding inflation, Nabiullina said, and the government is planning measures, including a draft resolution to increase duties on wheat and barley, and potentially on dairy products, to control inflation.