Russia: new trade law aims at limiting retail monopolistic behaviour

Planet Retail weekly bulletin 20 Jan 10

The Russian Parliament has approved a law which it hopes will make pricing more predictable and transparent; boost competition in the retail sector; limit retailers' monopolistic behaviour; and make relations between retailers and suppliers more transparent. The law, which has been five years in the making, will be enforced from February 2010.

The law will forbid grocery retailers to open or lease new stores in Moscow, St Petersburg and any other given city districts, where their market share is higher than 25%. The law will apply to all grocery retailers with annual turnover higher than RUB1 billion (USD32 million). The aim is to increase competitiveness in the retail scene while protecting small independent retailers.

The law also limits so-called "bonuses" (volume discount) that grocery suppliers offer to retailers to 10% of total cost of delivery. Additionally, the Government set up a list of "socially important products" (i.e. staple food), where the bonus is prohibited.

Full story at http://www.planetretail.net/NewsMedia/Bulletin.aspx?NewsItemID=56168