Russia agrees 40% rise in energy prices

Russia agrees 40% rise in energy prices

By Catherine Belton in Moscow

Published: May 6 2008 20:01 | Last updated: May 6 2008 20:01

Russia on Tuesday signed off on a series of steep price rises for domestic gas, power and railway services for the next four years on the eve of Dmitry Medvedev’s inauguration as the country’s new president.

Mr Medvedev, who will be sworn in as Russia’s president on Wednesday, will inherit a potentially poisoned chalice of increasing economic and political risks as inflation surges to as much as 14.3 per cent. Thousands of people across the country took to the streets on May Day in rare demonstrations against rising food prices and living costs, the same day as a pre-election price freeze on basic foodstuffs expired.