State Duma does not raise maximum share of market in retail deals to 35%

MOSCOW. June 7 (Interfax) - The State Duma has passed in the second reading a bill regulating the rules for transactions in the retail sector amid the introduction of sanctions and the withdrawal of foreign retail chains from the Russian market, with a proposal to increase from 25% to 35% the market share limit for all transactions in retail removed from the final text of the bill.

The bill (N68181-8) was introduced by deputies at the beginning of February. Initially it regulated the forms of state partnership with animal shelters and fell under the competence of the Property Committee, but was amended by the second reading to deal with trade activities.

According to the bill, prepared for consideration in the morning, a proposal was made to increase from 25% to 35% the current cap on market share in all retail business deals from June 15, also the document temporarily (from June 15 to December 31, 2022) removed for the retailers this restriction when purchasing or leasing retails chains which were owned by foreign entities that have left Russia.

During the plenary session, the head of the Committee on Industry and Trade Vladimir Gutenev said that the Industry and Trade Ministry had comments on the bill and asked that consideration of it be postponed. As a result, deputies adopted the bill in the second reading, but without the norm of raising the threshold to 35%. The new text of the bill was distributed in the Duma chamber.