The Russian government has taken steps to increase the regulation overseeing relations between suppliers and retailers down the food chain in the country.
Go deeper with GlobalData
The government plans to submit draft proposals of a bill on State Regulation of Trade Activities to the State Duma.
The draft legislation specifically tackles the amount of time it takes retailers to pay suppliers.
It also imposes a “direct ban” on the use of “unfair practices by trade networks and unacceptable actions”. These include such practices as demanding “bonus” payments from suppliers, the government said.
The proposed bill also attempts to limit the power of big retail chains by hindering expansion.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUnder the scheme, food retailers with annual sales of more than RUB1bn (US$31.2m), or market share of more than 25% an any given urban market, would be prevented from buying or leasing additional retail space.
The draft law on state regulation of trade has been approved by the government and will now be considered by the Duma before potentially coming into force.
