Russia exempts butter, egg producers from paying bonuses to retailers

MOSCOW. Feb 3 (Interfax) - The Russian government has included butter and eggs in the list of socially important foods for which producers do not need to pay bonuses to retailers, the Cabinet said in a press release.

The relevant resolution, which amends resolution No. 530 issued July 15, 2010, was signed on February.

Under the law on retail sales, suppliers pay retailers a bonus for buying a certain quantity of goods from them. Including butter and eggs in the list of socially important goods for which bonus payments are not allowed, will eliminate this practice for these products, the press release said.

The ban on charging a bonus will "give producers an opportunity to reduce costs when supplying products to retail chains and direct the freed-up financial resources toward the modernization and expansion of production," and "could ultimately help reduce producers' wholesale prices for consumers, including as a result of production growth," the release said.