Expert: One Can Assume That Drug Prices Not Only Won't Be Stopped, They Will Increase Even More

Why will not the authorities be able to solve the problem of drugs.

- Where is the logic: on the one hand they raise VAT on drugs, and on the other hand they are outraged, what are you doing? There is no logic in the actions of authorities lately, - Doctor of Economics Barys Zhaliba states.

In his express commentary to Salidarnasts, talking about Lukashenka's instruction to "severely stop people" who have raised the prices of medicines, he predicted what the two mutually exclusive authorities' decisions may lead to.

- I do not think it will come to the closure of private pharmacies. I do not know the exact ratio, but in the district where I live, for example, there are only private pharmacies. The range of drugs in private pharmacies is usually much larger, because private pharmacies have always been more flexible and nimble. How are they going to "drag back the private sector to senses" - will they turn it into a state-owned, a hostile takeover? And most importantly, how will this be legally formalized?

I think it's just another horror story, pure populism, to show that he (Lukashenka) cares about people who need drugs. They are mostly pensioners.

The worst thing this policy can lead to is another shortage of medicines and the ruin of the private pharmacy business.

They can make a demonstrative "raid" on a few pharmacies, in response, the private sector may lower prices, but temporarily, because the price should produce profit. But by and large they won't go further than threats, - the economist believes.

He notes that the formation of drug prices in Belarus has never been transparent. Medications in our country cost many times more than in the neighboring countries.

- A few years ago, when people started to complain en masse that drugs were cheaper in all neighboring countries, even in Russia, Lukashenka gave orders to investigate and find out the reason. Apparently, they have not figured it out yet, because the prices of medicines have not fallen. We still haven't found out why drugs become so expensive when crossing our border.

But now, it is clear, all prices are going up, because inflation is accelerating. And drugs are no exception. Prices of imports depend on the rate of the Belarusian ruble. If it depreciates, you can imagine the position of importers. They need to buy foreign currency to import the goods. So if there is a devaluation of the ruble, imports automatically become more expensive. And there is more than enough of imports when it comes to medicines.

We can assume that the prices of medicines not only will not stop, but they will increase even more.

The global trend remains - rising prices, rising cost of currencies. If you forcibly hold down the price of one thing by administrative means, the price of the other will start to rise. So all these restrictions will not last long. In my opinion, we even have legislation stipulating that the prices can be fixed for up to three months, because the producers and the trade will simply go bankrupt.

Remember how long the March restrictions on masks and sanitizers were in force last year. Even if the price is fixed, the cost will still increase because of inflation, sellers and manufacturers will be left without profit, and then the losses and bankruptcy will follow. No one will trade and produce at a loss, - Barys Zhaliba summed up.