Food retail – 180-day transition period for amendments to the Retail Law proposed

A harsh version of the amendments passed the first reading on 19 May, and for a month the State Duma is to collect further proposals that are to be considered for the second reading. 

The length of the proposed transition period represents a comfortable scenario and allows for a smooth transfer of the relationships between suppliers and retailers to the new regulatory norms. In our base case, we think that large scale food retailers will be able to avoid a material deterioration in commercial terms after the amendments have been introduced, largely benefiting from their established purchasing power and geographical reach.