The Russian government has taken steps to increase the regulation overseeing relations between suppliers and retailers down the food chain in the country.


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.

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Under 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.

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