SIMFEROPOL, June 2 (RIA Novosti) – Crimea’s re-unification with Russia has boosted the purchasing power of its population by over 30 percent, the Black Sea republic’s Deputy Prime Minister Rustam Temirgaliev told reporters Monday.
“The purchasing power has surged by more than 30 percent, in addition to pay rises for non-budget organizations and commercial firms, so Crimeans’ purchasing power is going up,” Temirgaliev explained.
He added the recent uptake in prices on food and other consumer goods on the peninsula was driven by speculative trading coupled with depreciation of Ukraine’s national currency hryvna that is being taken out of circulation.
The deputy premier vowed to keep tabs on prices and cap them if needed. “Now that the Russian ruble has officially become the only currency in the republic it will put an end to speculation,” Temirgaliev said, adding Crimean authorities would provide assistance to local producers to ramp up with competitive power.
Last week, Russian President Vladimir Putin signed a law shortening the period of time during which the Russian ruble and Ukrainian hryvnia simultaneously circulated on the peninsula to June 1.
Crimea has meanwhile switched to ruble in all payments, including salaries, pensions, social benefits, as well as tax payment and utility payments.
Crimea, formerly Ukrainian Black Sea peninsula, refused to recognize the legitimacy of the government in Kiev which seized power as a result of a coup in February and rejoined Russian in March following a referendum.
