Russia: every fourth retail market can be closed soon

Tholen - According to www.newsru.com, about 25% of all retail markets in Russia will have to close in the coming months, due to their non-conformity to the new law "About the retail markets" and Russian requirements of safety and sanitation. The remaining markets will have to raise charges for the right of trade, since the government bound them to introduce a stricter control and – gradually - to be transformed into supermarkets. New requirements for the markets will come in force on June 11th, but from April 1st complete prohibition of trade for foreigners will also be introduced.

Such restrictions can have serious impact on retail. Today, many of the existing markets do not meet the new requirements concerning sanitary rules, an opportunity to find true owners and they also have incomprehensible control conditions. On the other side, the markets have not enough time to pass re-registration according to the new requirements, so the markets that will not make the deadline - approximately 25% - will have to close.

Furthermore, on April 1st, the Russian government's decision wll come in force, according to which the foreigners do not have a right to trade on the markets and in the stalls. Russian newspapers recall, that the government adopted the decision about the establishment in 2007 the permissible number of foreign workers in retail trade in the country – no more than 40% through April 1st and 0% after that due to the expansion of the access for Russian producers to domestic markets.

According to the Federal State Statistics Service, there are around 5800 markets in Russia and they provide 1,2 million work sites. The volumes of their turnover are unknown to the government, but according to the estimations of the Russian Ministry for Economic Development and Trade about half of entire vegetable production is traded through the markets.

Publication date: March 29 2007
Author: FreshPlaza Correspondent Poland
Copyright: www.freshplaza.com