This issue was raised by the Association of the Russian Pharmaceutical Manufacturers many times, and finally, it was mentioned at President Putin’s press conference.

President Putin said that price regulation of the segment of the low-priced medicines has lead to the potential closure of production facilities.

“There are certain reductions of domestic cheap medicines by 2.5%, however, it is a reduction variety of medicines, but not in chemical formulas. These medicines, especially if it is included in the list of essential medicines, is regulated by the Government. The Government decided to limit the price raise, and if the average price increase for the medicines from the Essential list was 8.8% then the “cheap” medicines increased by 16% in price,” said President Putin.

There are two ways to fix this issue. Either to subsidize the producers if the budget allows to do so, or let the market determine the price. According to the President, the Government will decide in 1- 2 months.

“ARPM many times appealed for removal of strict price control. A one-time indexation by 30% was discussed last year. However, practically nothing was done. I hope that after the President’s speech the issue will be resolved,” said ARPM Director General, Victor Dmitriev.