Memorandum of cost containment

On September 16, the press center of the ITAR-TASS members Interbranch expert council, which includes representatives of the Russian retailers, distributors and manufacturers, have signed a memorandum to avoid unnecessary growth of retail and wholesale prices of food in terms of food sanctions.

In a statement, All-Russian Unions and Associations of manufacturers, suppliers, retailers and consumers of food products and raw materials included in the Interdisciplinary expert advice on the development of the consumer market (MES) refers to the growing concern of public authorities and the Russian population dynamics of changes in food prices . Sharing this concern and in order to ensure the stability of the Russian food market participants Interbranch advisory council on the development of the consumer market claim that market participants are on their own and together with the federal and regional authorities working to provide alternative supplies of domestic and foreign products. In addition, due to the speculative sentiment of individual market participants, it is necessary to ensure continuous monitoring of prices, with special emphasis on socially important food products.

Administrative measures to control the prices really are not able to provide guaranteed availability of products on the shelf, their consistent quality and affordable price. Moreover, erroneous and ill-conceived initiatives only lead to the criminalization of the market and the care of business in the shadows. Realistically assessing the circumstances, market participants have decided on joint action to ensure a stable situation in the food market and protect the interests of ordinary buyers.

For the whole period of validity of the special economic measures developed the following principles:

1. For manufacturers and suppliers of food raw materials and products:

• make the necessary efforts to prevent unjustified rise in selling prices of raw materials and foodstuffs;
• to avoid artificial reduction in the supply of raw materials and food products to retailers;
• to ensure consistent quality of raw materials and foodstuffs;
• to explore the possibility of increasing investment in the production of domestic products, and, where appropriate, to increase the supply of foreign countries.

  2. For commercial networks:

  • make the necessary efforts to prevent unjustified rise in retail prices for food consumer goods;
  • to prevent the reduction in sales volumes of food products and reduce their quality;
  • to maintain the quality, availability and terms of trade networks services rendered in relation to suppliers of food products;
  • to facilitate access to the retail quality of domestic products.

    3. Market participants will refrain from the use of each other penalties for the supply of foodstuffs covered by the Decree of the President of the Russian Federation "On the application of certain special economic measures to ensure the security of the Russian Federation" № 560 of 08.06.14 and will also coordinate efforts to replace their domestic and foreign counterparts.

    The participants of the food market, being aware of its responsibility to the millions of Russian consumers and reaffirming the priority of their interests in their business practices, undertake to use all means at their disposal mechanisms for conflict resolution, based on the principles of inter-sectoral self-regulation. This statement is open to accession by all manufacturers, suppliers and retailers of food and raw materials.

    This solution is supported by Deputy Prime Minister Arkady Dvorkovich