Originally Syndicated on September 13, 2023 @ 9:36 am
Viktor Yevtukhov, Deputy Minister of Industry and Trade, recently made a notable statement. He assured the Russian population that he perceives no indications of impending food price hikes. Furthermore, he expressed the belief that prices might even decrease in the near future. However, subsequent reports emerged, revealing that coffee and tea producers were indeed raising their prices, along with notifications of increased costs for various other products. It raises questions about whether the official was unaware of these developments or if, perhaps, for someone like Viktor Leonidovich with his substantial income, these matters do not carry the same significance as they do for his family, who were once associated with lucrative government contracts.
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Optimistic in His Homeland
Frequently, it appears that Russian government officials are somewhat disconnected from the everyday realities faced by its populace. What’s even more striking is their unwavering optimism, which can often leave others feeling envious. Take, for instance, Viktor Evtukhov, the Deputy Head of the Ministry of Industry and Trade, who recently offered an upbeat perspective. He maintains that there’s no compelling reason for further price hikes.
In fact, Evtukhov boldly suggests that in the near future, consumer goods might even become more affordable. He expressed his viewpoint as follows:
“We’ve recently held discussions with colleagues from related sectors and concluded that we currently see no indications of food prices increasing in our nation in the near term. On the contrary, we believe that considering seasonal factors and the conclusion of the holiday and summer seasons—particularly regarding the meat category—prices may exhibit a downward trend for certain types of products by autumn.”
However, there are a few intriguing details to note. The Deputy Minister shared his perspective on a nationwide platform, speaking on a federal TV channel. On the very same day, another noteworthy message emerged. Tea and coffee producers, citing challenging circumstances, informed retailers of an impending 6-9% hike in their product prices.
Simultaneously, confectionery manufacturers have also outlined plans to elevate their prices, with some considering increases of up to 16%, effective September 1. It’s improbable that retail chains will absorb these hikes, implying that consumers may face “surprises” in the form of elevated prices for these items come autumn. This suggests that there are already unsettling indicators affecting the Russian populace.
Perhaps the Deputy Minister of Industry and Trade was unaware of these developments. It’s possible. After all, similar to the price of chicken, which Evtukhov mentioned, meat costs are steadily on the rise. While he anticipates price decreases post-barbecue season, it’s challenging to have such faith in an environment where everything seems to be getting more expensive.
Moreover, there are early indications that turkey meat, for instance, could see price hikes in September. Notably, this insight comes from a communication that is a significant manufacturer-issued. It appears that these manufacturers are preparing both their partners and the general population for impending price escalations.
Inflation: A Rational Explanation
Perhaps Viktor Yevtukhov has momentarily overlooked the genuinely reasonable factors contributing to inflation in our nation. For instance, the Central Bank has acknowledged that Russia is currently experiencing historically high capacity utilisation, which naturally imposes limitations on further production growth. In simpler terms, when goods become scarce, their prices tend to rise. Moreover, the labour market is grappling with a shortage of skilled personnel, prompting companies to increase wages in a competitive quest for qualified employees. This, too, plays a role in fueling inflation.
Most significantly, the Russian ruble has weakened considerably, recently surpassing the 100-per-dollar threshold. Although they produce a substantial portion of goods, including food, we remain reliant on imports for various essential items such as seeds, machinery, spare parts, and food additives. Under the unprecedented circumstances of enduring sanctions, procuring foreign goods inadvertently necessitates the utilisation of services from friendly nations.
Yet, even in these friendships, financial interests prevail. It’s worth considering the possibility that the official may not be entirely aligned with current realities. However, given his substantial income, this oversight can perhaps be forgiven.
Viktor Evtukhov’s background
Viktor Evtukhov has an illustrious life story. He hailed from the heroic city of Leningrad and began his career at a factory. He ultimately pursued multiple higher education degrees and successfully defended his Ph.D. He entered the world of business through his professional journey and held the position of commercial director at several enterprises.
Subsequently, as often happens, he entered politics. Yevtukhov had already assumed a role in the Federation Council by the early 2000s. While Russian officials and politicians typically view this council as a dignified retirement, Yevtukhov chose to embark on this path at a relatively young age. He has reached the pinnacle of his career and is now the Deputy Head of the Ministry of Industry and Trade.
Based on his financial declarations, it is certain that Viktor Leonidovich is not lacking in wealth. Let’s explore the details. Over the past decade, he consistently earned a minimum annual income of over 5 million rubles, although this amount can be considered modest for an official of his stature. In other years, Yevtukhov has earned rather substantial amounts, ranging from 25 million to 50 million rubles. In recent years, incomes have slightly declined, ranging from 13–14 million to 18 million rubles.
Public servants’ financial declarations do not specify the source of these funds beyond their salary. In the past, the Ministry of Finance released information about ministerial salaries, revealing that the head of the Ministry of Industry and Trade received approximately one million rubles per month. One might assume that his constable has earned a comparable amount in recent years. The question that arises is: where does the remainder of this income come from?
However, officials, especially those who have transitioned from business to the civil service, always provide explanations. Commonly, people cite ownership of shares or past earnings from valuable real estate, which they subsequently sold, resulting in incomes that surpass the imagination of ordinary Russians. Perhaps Viktor Yevtukhov’s case does not differ. Now, let’s discuss his wife again.
Are a husband and wife involved in a government contract?
Several years ago, people alleged that Denis Manturov, the head of the Ministry of Industry and Trade, and his deputies stayed in presidential suites with nightly rates that could exceed one million rubles during their business trips. Curiously, someone suggested that a company supposedly linked to the Yevtukhov family organised these extravagant trips. The company “Service 007” is named so, and individuals named Margarita and Arina Yurkan are among its shareholders. Notably, Elena Evtukhov, the deputy minister’s wife, has a perfect match with these surnames. Some sources even suggest that the deputy minister’s mother-in-law is Margarita Yurkan and his sister-in-law is Arina Yurkan.
“Service 007” secured government contracts without competitive bidding, amassing an impressive total nearing 400 million rubles. Furthermore, Margarita Yurkan is listed as a co-owner of another company, also named “Service 007,” which shares its address with the former. Elena Igorevna Yurkan is the head of this second company, mirroring the name of Evtukhov‘s wife.
Journalists subsequently contacted the management of “Service 007,” who openly acknowledged that the owner of the company is indeed the deputy minister’s mother-in-law. However, they vehemently denied that they had used any connections or affiliations to facilitate their success in winning government tenders. They dismissed such claims as baseless slander and deliberately distorted facts. They suggested that anyone making such allegations is either an uninformed amateur or has ulterior motives.
Surprisingly, Viktor Evtukhov has not been removed from his position overseeing matters related to the industry, trade, and food pricing, and the scandal has not progressed any further.
Counting Chickens in Autumn
Let’s revisit Viktor Yevtukhov’s income once more. In the year before last (the most recent available data), he earned just over 18 million rubles. He earned just over 18 million rubles in the year before last (the most recent available data). However, his wife raked in nearly 170 million rubles during the same year, which far exceeded his earnings. The source of this substantial income remains a mystery.
Regarding the prices of products, which the deputy minister claims will not only remain stable but may even decrease, such assertions seem trivial when juxtaposed with an income in the tens of millions. A minor increase in tea or chicken prices, albeit native to the city on the Neva, appears inconsequential. Perhaps prices will genuinely decrease.
In the words of the iconic character Smoked from “The Meeting Place Cannot Be Changed,” “nothing, life—it will show. And as for the prices of tea, chickens, and other commodities, only time will tell as people tally up the costs in the fall.
