IN light of the Russia-Ukraine war, Putrajaya must establish a price stabilisation fund to prevent inflation that would further increase food prices and business costs, Lim Guan Eng said today.

The DAP secretary-general said in a statement that an initial RM3 billion in seed money can be provided for this by utilising the full amount to be collected from Budget 2022’s prosperity tax, a “windfall tax” imposed on large companies.

“Prices of goods, especially food and commodities such as oil, corn, soybeans, palm oil and meat, are expected to rise,” the Bagan MP said.

“Ukraine is a producer of wheat and corn and controls about 70% of the world market, and these are key ingredients in animal feed.

“For the government to deny there would be any price increase and not take any mitigation measures is not only irresponsible but an abdication of its fundamental duty as a government to look after the rakyat.”

He said prices of corn, wheat, soybean and palm oil have soared since Russia’s attack on Ukraine.

Lim also asked if the government could provide projections of the expected price rises and the current inventory of essential items available in order to prevent ballooning of costs in three to six months’ time.

On Thursday, Russian President Vladimir Putin announced a “military operation” in Ukraine and called on soldiers there to lay down their arms, defying Western outrage and global appeals to not launch a war.

Putin’s statement came after the Kremlin claimed rebel leaders in eastern Ukraine asked Moscow for military help against Kyiv.

Lim further said the government should also review its Russian business interests and transactions, following the United States-led global financial and business sanctions on Russia.

He said this was to prevent Malaysia from falling foul of these sanctions, which can jeopardise its relationship with the West.

“In the military sphere, will Malaysia reconsider its use of Russian-sourced weapons and equipment for the Malaysian Armed Forces (MAF), when dealing with Russian defence and aerospace firms?” he said.

Lim said MAF’s inventory of Russian fighter jets include 18 Su-30MKM units bought in a US$900 million (RM3.78 billion) deal in 2003, and the 18 now-decommissioned MiG-29N units it bought in a US$600 million (RM2.52 billion) deal in 1995.

He said other weapons were reported to include air-to-air munitions, air-to-ground munitions, infantry portable anti-tank guided missiles, and short-range man-portable air defence systems.

Lim also criticised Prime Minister Ismail Sabri Yaakob for not calling out and condemning Russia’s move.

“Instead, Ismail has chosen to appear to condone the brutal war imposed on Ukraine by Russia with an impotent statement that fails to uphold the national sovereignty and territorial integrity of independent states recognised by the United Nations.

“Malaysia would do well to learn from both our Asean neighbours, Indonesia and Singapore, in condemning outright violent aggression.” – February 28, 2022.