Page 136 - RusRPTMay21

9.1.5 Retail sector news
State regulation causes deficit problems for food retailers. A government cap on retail prices for key foodstuffs — imposed last year on the orders of President Vladimir Putin — generated its first crisis this week. Retailers complained they were not receiving sufficient quantities of sugar because producers were waiting on promised government subsidies before making sales. If these sort of Soviet-style interventions in the market continue, similar sorts of deficit crises will become ever more common, and could lead to empty store shelves.
Sources at Russia’s largest retail chains said sugar producers stopped making sales in the last 10 days of March. The Bell confirmed these stories with representatives of two of Russia’s top five retailers. The retailers said they have just two-week’s sugar supply left in their depots.
Along with sunflower oil, sugar was one of the products price capped in December. Putin ordered the measure after prices in Russia began to rise in response to global increases. Putin accused agribusinesses of trying to earn inflated profits and demanded the government step in.
136 RUSSIA Country Report May 2021 www.intellinews.com