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changes to the law “On Commerce." The law was enacted in 2012 over the objections of retailers. It regulates the details of grocery store retail and includes rules on prices, sales promotions, and the geographic concentration of stores. Retailers are pushing to get rid of the law; they would rather regulate themselves through an industry council. This arrangement would legally enshrine the delicate oligopoly that rules the industry. It looks like the big retailers might get what they want. There is a consensus that the law failed to achieve its objectives. During the meeting, Kozak said: “It is important that we don’t end up with regulation like during the Soviet Union.” It is time for the pendulum to swing back towards more freedom, he argued. Retailers want a moratorium on new changes to the law, which was amended in 2016 and 2017. They also brought a list of proposed changes to the meeting with Kozak, however. They want the government to loosen regulations on sales promotions and logistics chains. At the same time, a new working group is set to deliver a proposal for regulation by an industry council by March 2019.
Russia could see the largest number of outlet stores openings in 2019 in terms of numbers, geographic spread, and floor space, Tass said on November 13 citing a study by CBRE real estate consulting company. "For the first time in such a brief period, there are plans to open up four outlet stores at once, thanks to which the market will grow by 95,700 square meters or nearly double. At present, the total rental area for existing projects is 102.6 square meters," the company said. Most of the existing factory outlets are slated to open in Moscow, the report says, mainly talking about the Novaya Riga Outlet Village and Outlet Village Hines locations with a total area of 65,000 square meters. Fashion House Outlet Saint Petersburg will be opened in St Petersburg, with a total area of 20,300 square meters. Brand Stories outlet with 10,300 square meters will open in Yekaterinburg. With all the commissioned projects outlet stores will reach 1.6 square meters per 1,000 Russian residents coverage, with considerable upside as in Poland it averages to 7.8 square meters, in Italy to 13.1, and in the United States to 27.2.
9.1.6 Agriculture sector news
Data from the beginning of November show Russia’s grain harvest this year was about 15% smaller than last year. Last year’s harvest, however, was exceptionally large due to favourable summer grain-growing conditions. Compared to 2016, this year’s harvest was only a few% smaller. The sugar beet crop was about 10% smaller than last year, while potato and other vegetable crops matched 2017 levels.
The area of land under cultivation has expanded in recent years, but arable land is unevenly distributed across Russia. Wheat and sugar beet cultivation is concentrated in the steppe that stretches from the Black Sea to Siberia, while potato and rye cultivation succeeds at more northern latitudes. Also crop composition has changed since the breakup of the Soviet Union with the traditional rye and buckwheat crops replaced increasingly by maize and wheat. In terms of weight, two-thirds of Russia’s grain crop is now wheat. Wheat is exported especially to countries in the Middle East.
The size of harvests impacts food prices and thus the general price level. Foodstuffs represent 37% of Russia’s consumer goods basket used for price indexing. Compared to many other countries, this is a large share. Thus, the large harvest last autumn slowed down slightly the rise in consumer prices during last winter and spring. Accordingly, this year’s smaller autumn harvest
90 RUSSIA Country Report December 2018 www.intellinews.com