Russia govt to ban trading networks to delay payments to suppliers

MOSCOW, July 13 (Itar-Tass) -- The Russian government presidium will
consider a bill on the foundations of state regulation in trade. The bill
has been drafted and actively discussed by experts and media for the last
three years. Despite the fact that one of the main goals of the bill
initially envisaged the necessity for setting the top level for trade
mark-ups (particularly on food products), the current bill does not
contain this provision.
"The direct regulation of prices and trade mark-ups was not included
in a sweeping set of measures that the state can take in the trade. All
that is not forbidden is permitted," a source in the government said.
Meanwhile, the source recalled that the bill contains the notion of
so-called "socially important goods." According to him, this fact shows
that "at some stage the law can permit to regulate the prices on such
goods as, for instance, medicines."
In his view, the bill is "a certain compromise and the review of
positions of all entities of the commodity market and lawmakers." In
particular, the law will ban the trading networks to delay the payments
for the supplied products "All this time suppliers complained that payment
delays last several months sometimes, and the trading networks could be
brought to account," he emphasized. According to the source, "The law will
contain a provision banning to delay the payments by the traders -
possible payment deadlines alter in various types of goods for just a few
days."
Meanwhile, the law confirms "the notification procedure for launching
trading business" notwithstanding licensed types of business. "The traders
lodged many complaints to various authorities, primarily municipal
authorities, which demanded a big number of documents for launching the
retail trade and sometimes for money," the source reminded. "Now the law
forbids these actions," he pointed out.
The law authors "also gave up an attempt to divide goods in domestic
and imported in order to grant some preferences to domestic traders
(domestic commodity producers requested for this often)." The law also
envisages "a proper list of inadmissible actions of economic entities."
According to the source, "This list of transactions and actions, which are
banned, is quite voluminous and takes about two pages."
The law also focuses on the street retail trade (kiosks, mobile trade
points), which will be regulated tougher. "Despite the fact that the
street retail trade takes a share of more than ten percent of the trade
turnover, and it cannot be banned immediately, such trade should get rid
of its major types, as there are many complaints on street trade
violations on the market," the source said. "This sector should be
regulated in a special way with special places granted for street retail
trade," he added.