Decree of Price System

"On the System of Price in the Ukrainian National Economy 
and Consumer Market"]

[Ukrainian Cabinet of Minister Decree No. 376, effective 2 January
1992: 

[Text] In connection with the extremely difficult economic
situation and the Russian Federation's implementation of measures
on price liberalization starting 2 January 1992, in order to
protect the Ukrainian market and in accordance with the Ukrainian
Supreme Soviet Presidium decree of 27 December 1991, "On the Social
Protection of the Ukrainian Population and Domestic Market," the
Ukrainian Cabinet of Ministers DECREES:

1. That free prices and rites shall be applied starting 2 January
1992 on all products, goods, and services, to be determined by
enterprises and organizations based on supply and demand, with the
exception of products, goods, and services for which the present
decree stipulates regulation of prices and rates.
That limits shall be placed, starting 2 January 1992, on amounts of
increase in state prices and rates applied to particular types of
products, goods, and services that are of vital economic and social
importance, in accordance with the Appendix.

2. That the Ukrainian Economics Ministry, in consultation with the
Ukrainian ministries and departments concerned, shall, when
necessary, provide for subsidies on bread, vegetable oil, sugar,
milk, kefir, fat-free cottage cheese, margarine, animal lard,
groats, pasta (with the exception of the Ekstra group), children's
dairy and cereal foods (including concentrated foods), fuel sold to
the public, medicines and medical products, technical devices for
disability prophylactics and invalid rehabilitation, transportation
and other socially vital goods and services to which
state-regulated prices and rates are applied, and shall also
establish procedure for providing subsidies from the budget for
these goods and service.

3. That the Ukrainian Economics Ministry, with the participation of
the ministries and departments concerned, shall:
-establish procedures for setting prices and rates on products,
goods and services specified in the Appendix to this decree;
-approve rates on standing timber (drevesina otpuskayemaya na
kornyu) and rates of deductions for geological exploration,
-establish amounts of trade discounts and surcharges on goods to
which state -regulation of retail prices applies;
-set deposit prices on glass containers;
-formulate and establish procedures governing the formation and
application of free prices and rates on products, goods and
services, procedures on re-evaluation of product remnants, and the
mechanism regulating prices on goods produced by monopoly
enterprises in accordance with antimonopoly legislation;
-when necessary, submit proposals to the Ukrainian Cabinet of
Ministers concerning changes in the products list and price and
rate levels applied to products, goods and services which are sold
at state-regulated prices and rates.

4. That the Ukrainian Economics Ministry shall be invested with the
right to introduce stale regulation of prices on goods produced by
monopoly enterprises;
that maximum levels of profit shall be set, when necessary, on the
prime cost of products, work and services sold on the basis of
contract (free) prices.

5. That in order to ensure the necessary coif-accounting conditions
for enterprises in sectors having substantial differences in
investment and the cost of production owing to factors beyond their
control (differing terrain, geological, natural and climatic
conditions), ministries, departments, and other economic
administration bodies shall, in consultation with the Ukrainian
Economics Ministry and Finance Ministry, be permitted to form
financial regulation funds (without any change in accounts with the
budget), and shall set rates of contributions to the funds to be
deducted from profits or included in the cost of production. When
necessary, a mechanism of settlement prices may be introduced.

6. That in consideration of the new system of prices and rates, the
Ukrainian Stale Committee for Construction shall see to the
formation of normative estimate base and set procedures for
applying it in construction, and institute monitoring of compliance
with normatives by clients and by project design, construction
installation, and other organizations.

7. That the Ukrainian State Price Control Inspectorate shall, in
consultation with the Ukrainian Economics Ministry and Finance
Ministry, formulate and establish procedures for the application of
economic sanctions for price violation, in accordance with
antimonopoly legis-lation.

8. That the Ukrainian Foreign Economic Relations Ministry, together
with the Economics Ministry, shall submit proposals to the
Ukrainian Cabinet of Minister relating to prices on imported and
exported goods, and see to the adoption of a system of measures to
protect the domestic market, in particular by means of licensing,
quotas, custom control, and rate regulation.

9. That the Crimean ASSR Council of Minister, oblast executive
committees, and the Kiev and Sevastopol city executive committees
shall regulate rates on communal and household services (except for
those stipulated in the Appendix to *hi« decree) rates on the
haulage of passengers by city and suburban transportation operating
under special regulations [osobyy rezhim] (route taxicabs. express
conveyances, passenger and freight routes, and so on), and markups
on the products of public food service enterprises.
That the cost of order for services accepted earlier and partly or
completely paid for. and the materials for filling them shall not
be subject to recalculation.
10. That the Ukrainian Statistical Ministry, together with the
Economics Ministry and the ministries and departments concerned,
shall adopt an accounting system characterizing the changes in the
system of prices and lies.
11. That the Ukrainian Economics Ministry, the Crimean ASSR Council
of Ministers, the oblast executive committees, and the Kiev and
Sevastopol city executive committees shall provide the ministries,
departments, enterprises, organizations and institutions concerned,
with the directive materials involved with the introduction of the
new system of prices.

[Signed] K. Masik, first deputy prime minister of Ukraine 
V. Pekhota, state secretary of the Ukrainian Cabinet of Ministers