OREANDA-NEWS. April 06, 2009. "Growing retail prices are associated, in particular, with the payments made by producers to retail chains. Such payments still tend to go up in 2009. Retail chains are increasing their pressure upon suppliers. To compare, in 2005 the aggregate pressure of retail chains upon suppliers did not exceed 5%; currently it reaches 60% for various groups of goods in some chains (meat, sausages)", said Timofey Nizhegorodtsev, the Head of the Department for Control over Social Sphere and Commerce at the VIII Annual Russian Retailing Congress, reported the press-centre of FAS Russia.

Timofey Nizhegorodtsev brought to the attention of the Congress some examples of unfair practices used by retail chains against producers. "Although those practices are not forbidden by the existing legislation, they are unfair because they discriminate suppliers and inflate prices", believes Mr Nizhegorodtsev.

According to the Head of the FAS Russia's Department, freedom of contract in relations between retail chains and producers is out of the question: "The principle of freedom of contract does not work, because a single company (a trade network), being at the end of the distribution chain, exercises extraordinary influence and will go any length", emphasized Mr Nizhegorodtsev.

Unfortunately, the current legislation does not allow active intervention of FAS Russia: today none of the retail chains enjoys the dominant position on the market of the Russian Federation. The issue will be resolved in the Law "On Commerce" that is presently being formulated by the Ministry of Industry and Commerce.

At the same time, Mr Nizhegorodtsev pointed out that on 21st April the Presidium of the Supreme Arbitration Court would examine concerted actions of retail chains in Tatarstan. Typically, the Courts request written evidence of concerted actions. The Head of the FAS Russia's Department expressed his hope that the findings of the Presidium of the Supreme Arbitration Court would create additional opportunities for protecting goods producers and enable the Antimonopoly Service to suppress unfair practice of retail chains.

In the meantime, producers can assert their interests through judicial procedures.