Mandated food allocation for "Russian dolls" in retail stores will not be instituted.
A fiery debate ignites over a business plan dubbed the "Russian Rack": the "Russian shelf" bill under scrutiny in the State Duma. This proposal aims to guarantee a slice of domestic items in both brick-and-mortar and online retail, causing a stir across the entire consumer goods sector. The parliament is scheduled to review it in the autumn of 2025, with an anticipated effective date of March 1, 2026.
According to recent reports from DK.RU, the inter-industry expert council for consumer market development (MЭС) and several food-related associations, including the Association of Retail Companies (AKORT), the National Meat Association, the National Union of Bakers, the National Union of Milk Producers (Soyuzmoloko), the Fisheries Union, and others, have pleaded with the Russian government to scrap the "Russian shelf" bill [1]. These entities are concerned about potential disruptions to their dealings with retailers.
However, State Secretary and Deputy Minister of Industry and Trade of Russia, Roman Chekushov, clarified in an interview with "Rossiyskaya Gazeta" that no plans for quotas on domestic food products exist, and the bill will only affect non-food goods [2].
Chekushov further explained that the bill outlines guidelines for setting a minimum quota for Russian goods in trade. The size of the quota will be determined by the Russian government based on the volume of goods produced within the country, by product groups [2].
The bill's primary relevance lies in the non-food sector, where "government support can significantly influence the growth of domestic production," as explained by Forbes Deputy Chair of the State Duma's Agriculture Committee, Yulia Ogloblina[3]. Yet, she emphasized the importance of considering farm products and providing support for small agricultural producers to gain access to retail chains and promote their distinctive products.
Russian parliamentarians are also pushing for retail chains to include at least 10% of local products among essential goods [1].
Further reading can be found on DK.RU regarding the potential joint state brand "Union State Product" between Russia and Belarus [4].
Meanwhile, Russia endures economic challenges such as a drop in the production of essential food products like sugar, sunflower oil, and flour, which is attributed to factors like expensive loans, higher taxes, diminishing harvests, and absent imported seeds [5]. These issues may indirectly affect the non-food goods sector by swaying consumer spending and overall economic stability. Additionally, there have been regulatory changes in Russia, including mandatory labeling for various consumer products and stricter regulations on e-commerce for food supplements [2]. Such changes, while focused on the food industry, might potentially impact the non-food goods sector as well.
[1] - https://dk.ru/business/industries/food/articles/proti-rossiyskomu-polku-ryadom-s-smi/[2] - https://dk.ru/business/industries/food/articles/chistyie-tovarnoye-znaki-na-lukhovitskom-molke/[3] - https://dk.ru/business/industries/food/articles/v-gosdume-obsuzhdayut-k-10-procentam-rossiyskix-produktivov-sredstv- MSCHAT/[4] - https://dk.ru/business/stati/rossiya-i-belarus-sozdadut-obyedinennuyu-gosudarstvennuyu-marke-soyusnyy-tovar/[5] - https://kremlin.ru/events/president/news/82043
- Despite the bill focusing primarily on non-food goods, it has raised concerns among various food-related associations due to potential disruptions to their dealings with retailers.
- The stricter regulations on e-commerce for food supplements, while focused on the food industry, might potentially impact the non-food goods sector as well.
