Marina Solovieva
As Logos Press previously reported, limited trade markups have not been applied to a line of goods from 13 items included in the List of socially important goods since April 30. The reason is that the Regulation on the order of formation of retail prices for essential goods became invalid.
The restricted list of goods included bread and kalachi, milk and dairy products (kefir, cottage cheese, sour cream and butter), sunflower oil, wheat flour, buckwheat, cereals, as well as food for infants and young children.
Until now, the trade markup on these goods did not exceed 20% of the purchase price, except for bread and kalacha, for which it was not to exceed 10%. For goods undergoing processing in trading units, it was set at up to 40%.
Experts raise concerns
As soon as the abolition of restrictions came into force, politicians and experts began to actively calculate the consequences of such a step for the economy and ordinary citizens.
“I consider the government’s decision to abolish the restriction of trade markups on socially important goods unnecessary and irresponsible,” says Marina Solovieva, program director of the Independent Center Expert Grup. – Unnecessary, because it cannot be said that these restrictions have greatly infringed on the interests of importers and retail chains. We are talking about “marketable” goods, such as bread, milk, cottage cheese, cereals, which are sold in large quantities. Even with a limited markup, retail chains earned on large volumes.”
She notes that initially the draft government resolution submitted for public discussion, which abolished the restriction of markups on socially important goods, provided only for the abolition of restrictions on trade markups on “environmentally friendly” goods. There was no talk of abolishing the limitation of trade markups on all social goods.
“However, at the very end, the draft suddenly included a clause stating that government resolution No. 774/2016 on the sale prices of socially important goods is recognized as null and void as of April 30, 2026,” the expert says. – In its decision, the government referred to the opinion of the Competition Council, in which it stated that the restrictions should be temporary and recommended supplementing the draft with provisions determining the duration of the restrictions.
Marina Solovieva points out that the government readily implemented this recommendation, although in many similar cases the authorities had not noticed the same conclusions of the Competition Council before.
“Such a conclusion, indeed, is in the table of objections and proposals to the draft decree,” she noted. – But exactly the same recommendation was made by the Competition Council before, on previous draft amendments to this decree. There were also conclusions of the Competition Council on other draft regulations, which the government successfully ignored. But for some reason it decided to take this particular opinion into account.
Such a decision is not necessary for the ruling party
Moreover, such a decision is not necessary for the ruling party itself, emphasizes Marina Solovieva.
“It hurts the image of the authorities in conditions when prices are already rising and people are already dissatisfied,” she says. – So I can’t say that the decision is the result of the lobby of importers and retailers, but it looks very much like it. Since private interests have become more important than even party interests, not to mention public ones, it may mean that someone is confidently “opening the door” to some offices with his foot”.
The expert considers this decision irresponsible because, if the government decided to cancel the restriction of trade markups on socially important goods, it should have provided for measures of social support for those vulnerable groups that will suffer from this abolition.
“This is also mentioned in the table of objections and proposals to the draft,” the specialist specifies. – Prices will rise already now, and pensions will be indexed only in April next year. As a result, someone will buy himself another luxury car, and someone will save money on milk”.
