Page 126 - RusRPTSept21

This has arisen as a result of client requests to the state agency. If the FAS can prove an anti-competition agreement, the chains could be fined up to 15% of annual turnover. As a part of the investigation, the FAS is also to test the general pricing policies of retailers.
The food CPI in Russia has been on a rising trend over the last year (it was 7.4% in July 2021 vs. 4.2% a year ago) and has been a point of focus for various state agencies. Food chains have been actively participating in price monitoring on a weekly basis, and have also introduced targeted initiatives to cope with the price growth in soft commodities (including zero mark-ups for socially important products).
We consider think there could be a wide range of outcomes, but there is little clarity as to how this could develop. The probes are likely to weigh on the sentiment in the sector in the near term and could slow the potential rerating that might have taken place following the good operational and financial results (as well as the robust 2H21 outlook).
126 RUSSIA Country Report September 2021 www.intellinews.com