Russia moves to freeze prices of ‘socially important’ foods

Russia’s biggest grocery chains have agreed to freeze prices on so-called “socially important” foods for the next two months. The Retail Companies Association says it’s submitted its new agreement to the Federal Antimonopoly Service (FAS) for approval, and it expects no resistance from officials.

The price-fixing agreement would affect beef, lamb, pork, chicken, frozen fish, milk and some dairy products, sugar, salt, sunflower oil, cereals, potatoes, cabbage, and apples, among other foods. Technically, the agreement doesn’t include a specific list of items whose prices stores must freeze. Instead, retailers are expected to generate their own lists, based on broader categories of socially-important goods. 

Retail chains are taking steps to insure themselves against charges of conspiring to fix market prices, one of the Association’s members said. As soon as FAS signs off on the agreement, prices will be frozen for two months. There is little doubt that the government will approve the price-fixing agreement, says one of the retailers.

Since late 2014, Russian grocery stores have faced accusations of price gouging, and some political groups have begun inspecting stores’ pricing policies.

Average retail prices in stores across Russia have risen significantly since fall 2014 in connection with the sudden collapse of the ruble, falling oil prices, and an exchange of economic sanctions between Russia and the West.

Some retail chains have already announced fixed prices on certain socially important foods, such as one chain’s decision to freeze the prices of flour, grain, fish, butter, pasta, and pelmeni for an entire month.