Russia’s parliament has approved a new draft retail law, which includes a controversial provision that could limit the growth of mass retailers in the country.
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The bill stipulates that chains with a market share of 25% or more in any city district would be prevented from opening new stores in that area.
The Russian government would also have the power to place an upper price limit on “socially significant” goods, including food staples, if their price were to jump by more than 30% in one month.
The bill also looks to oversee the relationship between retailers and suppliers and limits the so-called “bonuses” that suppliers are asked to pay to retailers to a maximum of 10% of sales.
Previous versions of the legislation had also looked to force retailers to publish a list of suppliers and purchase prices. However, the current draft has backed away from this in the face of fierce industry opposition.
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By GlobalDataIf the bill passes its third reading in Russia’s Duma, is approved by the Upper House and signed into effect by the president, it will come into force in February next year.
