Prime Minister Yulia Tymoshenko has threatened to cancel state subsidies to poultry producers if prices for their products do not reduce significantly by the beginning of August, according to official sources.

Ms Tymoshenko made the statement at a session with State Property Administration chiefs on 15 July.

She expressed concern about groundlessly high and constantly growing prices on chicken, reports the news agency, and alleged that it has been the main factor negatively influencing the inflation in Ukraine over last few months.

According to the Prime Minister, neither the Anti-Monopoly Committee of Ukraine nor the Prosecutor’s General Office have taken measures against these companies.

"Today chicken legs cost in Ukraine around 22-23 hryvnias, while they are sold in the whole world at 10-11 hryvnias. Tell me please what is it – special conditions for Ukrainians? Is it a special policy of plot and corruption? At the same time, they even receive subsidies from the state budget.

"If this position will show us inflation in a month, I promise you in presence of the whole country that subsidies to monopolist poultry producers will be cancelled," the Prime Minister said.