OREANDA-NEWS. March 31, 2009. FAS Russia obtained additional evidence of the impact of unfair practice of trade networks on the rising prices fir food products, reported the press-centre of FAS Russia.

The evidence was obtained in course of the FAS Russia's inspection whether the following trade networks PYATEROCHKA ("Agrotorg" OJSC); O'KEY ("O'KEY" Ltd.); DIKSI ("DIKSI-PETERSBURG" CJSC); LENTA ("LENTA" Ltd.) observed the antimonopoly legislation in their payments with products supplies on the retail market in St Petersburg.

FAS Russia analyzed contractual practice of trade networks with producers/ suppliers of goods in 2005, 2006, 2007and the first six months of 2008.

The Antimonopoly Service was also interested in the terms and conditions for supplying the following groups of food products: dairy products, and cultured milk products; bakery products; meat, and sausages; fish; groceries (cereals, pasta, etc.); juices, and soft drinks. For every network, FAS Russia analyzed at least forty contracts with the suppliers; in addition FAS Russia sent enquiries to other 16 suppliers as a counter-inspection.

Analysis of the antimonopoly compliance of trade networks in payment arrangements reaches the following conclusions:

Retail prices of the goods are based not only on production costs and distribution mark-ups, but also to a significant extent incorporate expenses of the goods supplier related to additional payments to the benefit of the trade networks;

The proportion of additional payments (bonuses, penalties, marketing services, etc.) made by the goods suppliers to the trade networks varies from 5 to 40% of all goods supplied to a network. Payments made by the goods suppliers to the benefit of the trade networks tend to increase annually;

To compensate additional payments the suppliers must repeatedly reconsider the prices for the supplied goods. The process of price reconsideration is rather dynamic and often depends directly on increased additional payments;

Grace periods for paying suppliers for the goods sold by the trade networks are extending. In 2005 the average grace period for payment was 21-25 bank days. In 2008 the grace period for the economic entities - members of the group of persons of Х5 retail Group increased to 45-50 days, and in some cases reached 65 days. Effectively, grace for payment is a short-term commercial credit.

Thus, if the goods suppliers perform their commercial operation by borrowing from credit organizations, suppliers refinance trade networks and at the same time suppliers themselves service such refinancing.

Aforesaid fully corroborates the FAS Russia's position on developing measured aimed at improvement of relations between the trade networks and the goods suppliers, particularly, with regard to the periods and conditions of payment for the supplied and distributed products, which was formulated in course of preparing comments on and proposals to the draft Federal Law "On the Fundamental Principles of the Governmental Regulation of Commercial Activities in the Russian Federation", regulating such relations.