Russian Communist Party Proposes 10% Cap on Essential Goods Markup

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Communist Party of the Russian Federation (CPRF) proposes capping retail markups on essential goods at 10%

The CPRF has submitted a proposal to Russian Prime Minister Mikhail Mishustin, calling for the introduction of a 10% cap on retail markups for essential consumer goods. BUSINESS JOURNAL has reviewed the proposal.

According to the CPRF, the current Federal Law "On the Fundamentals of State Regulation of Trade Activity in the Russian Federation" empowers the Russian government to freeze prices on certain socially significant food products. However, despite instances of price freezes on some food items, the law does not fully protect consumer interests. The Federal Antimonopoly Service has repeatedly recorded cases of unjustified price increases on certain essential food products by some retailers. Additionally, the price of the same product from the same brand can vary significantly depending on where it is sold.

The CPRF points out that there is already a mechanism in place for setting maximum wholesale and retail markups on the actual ex-factory prices of medicines included in the list of vital and essential drugs.

Introducing a cap on retail markups for essential goods could expand this existing mechanism.

"We ask you to express the position of the Russian Government regarding the possibility of setting a maximum retail markup on essential food products at 10% of the purchase price," the letter states, signed by CPRF leader Gennady Zyuganov and CPRF deputy Yuri Afonin.

Yuri Afonin previously reported that prices rose by 1.26% in the first two weeks of January, which is "more than the entire increase for January 2025." According to him, the situation with prices is exacerbated by business costs, including the increase in VAT from 20% to 22%.