Putin Proposes State Aid for Food Delivery Services

Russian President Vladimir Putin has asked the government to consider the possibility of supporting online food delivery services, including partial subsidizing of such delivery cost during the coronavirus pandemic period, TASS reports.

The relevant point is contained in the list of assignments of the head of state posted on the Kremlin’s website on Monday.

The Russian government is tasked “to consider the possibility of supporting and delivering online services of public catering delivery, including through partial subsidizing of the delivery cost to small and medium business companies during the new coronavirus spread period. The deadline is May 15, 2020,” the assignment says.

The Cabinet should also “implement further measures aimed at supporting socially oriented nonprofit organizations participating in activities to support citizens in connection with the spread of the new coronavirus infection” with the same deadline, according to the document.

The outbreak of the novel coronavirus has caused a soar in online food orders, Izvestia reported last month citing industry groups.

Food sales showed the biggest growth in February, by almost 25% in monetary terms, according to the head of the Delovaya Rossiya (Business Russia) Trade Committee Alexei Fedorov.

“The coronavirus scare has become another impetus for an interest in purchasing food online since many people are trying to avoid public places,” he said.

For his part, Artem Sokolov, CEO of the Association of Internet Commerce Companies (AKIT), told the paper that food sales were one of the fastest-growing segments. It enables customers not to show up in crowded places and limit coming in contact with other people, he noted.

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