President of Russia Suggests Measures to Avoid Global Food Crisis

Business Materials 7 June 2008 14:10 (UTC +04:00)

Azerbaijan, Baku, 7 June /corr. Trend U.Ismaylova / Giving a speech in the opening of XII St. Petersburg International Economic Forum on 7 June, the President of Russia, Dmitry Medvedev, suggested taking measures to avoid global food crisis.

"The food crisis is caused by the increase in demand for foodstuffs and expansion of production of biofuel due to oil price increase," Medvedev said.

According to him, negative contribution to the increase of worldwide foodstuffs prices was made by the system of protection of national agricultural producers through method of subsiding which appeared unable to prevent the world crisis.

"The crisis in the markets for the first time took a systematic character which was supported by development of complicated tools being ensured by raw assets. Disappointment in the USD led to rapid growth of allocations exactly into such tools. Unexpectedly it became clear that there is lack of liquid and reliable facilities to place funds of the investors," Medvedev said.

According to the President of Russia, the clearest response to the crisis would be combination of measures to stimulate agrarian production and corrections of national energy strategy.

"Such measures should be taken for a short period, because long-term such measures may only strengthen global crisis. It is clear that pragmatism does not allow any country to firstly refuse the protection measures, and the only way out of the situation may be only co-ordinated collective actions," Russian President said.

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