(3 Jul 1995) Russian/Nat

The Russian government has raised the tariffs on imported foodstuffs, claiming it will help Russian factories and producers be more competitive.

But consumers and factory managers are convinced that the price of domestic products will also rise, leaving people far worse off.

Shoppers fill this market square in Moscow, looking over a range of home and imported foodstuffs.

The selection may be wider than in the days of the Soviet Union but consumers are bracing themselves for a price hike which is likely to leave them badly out of pocket.

Worried by a deluge of foreign foodstuffs on to the market, the Russian government has raised the tariffs on imported goods. It is a move aimed at helping domestic producers compete on an equal footing.

But Russian consumers and factory managers believe the price of domestic products will also soar.

SOUNDBITE: (Russian)
"It's bad. Because of course everything will become more expensive. It'll just get dearer and dearer and will affect our family budget."
SUPER CAPTION: Shopper

Foreign supermarkets are now scattered all over Moscow. American and most European chains have opened outlets to entice Russian consumers. The high prices already prevent the majority of citizens from shopping at this store, now the prices are likely to escalate even more.

New tariffs on imports won't just affect western outfits.

This meat factory produces 70 tons of meat products every day. They make over thirty different types of sausage as well as various kinds of packaged cold cuts.

The factory uses meat imported from America because Russian farms cannot offer the quantity or quality required.

A rise in the tariffs placed on meat imported from the United States will mean a rise in the cost of Russian-made sausages and cold cuts.

Even factories which should benefit from the import hikes are sceptical of the government's move. Russian kvas is a soft drink made from bread, sugar and water.

When prices were freed four years ago, the popular drink could not compete with the cheap foreign juices and fizzy pop which began to appear in the shops.

But rather than feeling relief at the curbs placed on imported drinks, the kvas factory is dismayed. It uses imported sugar when its Russian suppliers are late.

SOUNDBITE: (Russian)
"Gradually, maybe not immediately or in one fell swoop, our prices will rise in line with those of foreign goods."
SUPER CAPTION: Sergei Mitonon, deputy director kvas factory

Produces unable to rely on Russian ingredients have little choice but to import despite the increased tariffs. Inevitably, it will the consumer who eventually foots the bill.

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