The Law ‘On Trade’ Will Inflate Prices and Reduce the Range
(Translated from Russian) The new trade law, supported by the FAS and Prime Minister Putin personally, and coming into force on February 1, contains the following main provisions: 1. trading network operations are limited to no more than a 25% share of sales in a certain geographical region; 2. limits are placed on contracts between suppliers and retailers for marketing payments and other payments for shelf space; 3. control over the prices of a number of “socially important” goods is introduced. According to its supporters, the new law should have a positive impact on local manufacturers and suppliers, as well as small retailers. Skeptics argue that the burdensome restrictions that the new law imposes on retail chains, as well as contractual relationships between suppliers and retailers, will raise costs and ultimately harm Russian consumers in the form of higher prices for food and other retail products.
