Members of the working group assessed the state of trade activities in the Russian Federation, their expansion, as well as the implementation of the law "On State Regulation of Trade Activities in the Russian Federation" during the second quarter of 2011.

Opening the meeting, Mr Zubkov said:

"On the whole, the results of implementing the law on trade during the second quarter confirm its effectiveness. Since early 2011, retail trade has increased by 5.3% on the same period of 2010 and totaled 8.7 trillion roubles. The fixed-site trade segment has grown even more, by 6.2%. The sector has attracted considerably more foreign investment. Such investment totaled $3.5 billion in January-June 2011 and accounted for 8% of overall foreign investment in the Russian economy. This is a 150% increase over the figures from last year.

"Active work is being conducted in order to implement the law in the regions. Twenty-nine regions have passed all the required regulatory documents, and 15 regions are implementing regional trade expansion programmes.

"These regions include the Altai Republic, as well as the Kaluga, Vologda and Volgograd Regions, which have passed all regulatory documents on time and have launched regional programmes. Consequently, initial conditions have been created to give agricultural producers easier access to retail outlets and to ensure stable prices on the consumer market.

"I would like to ask the leaders of other regions to follow the example of their colleagues, to promptly draft the required documents and take measures to implement them.

"I would also like to remind you that, following the working group's March meeting, the regions were advised to take measures to stop violations of anti-monopoly legislation by regional authorities.

"And yet the Federal Anti-Monopoly Service reports that some regional governments continue to ignore anti-monopoly regulations and requirements that are meant to promote greater competition inside the trade sector and a common national economic space. They do this primarily by establishing regional trade regulations and requirements that differ from federal standards, granting privileges to some commercial entities and restricting the free movement of goods.

"I would like to draw the attention of regional leaders to the fact that such an approach towards executing the working group's decisions is inadmissible.

"I would like to ask the Federal Anti-Monopoly Service to continue monitoring the situation, as well as the implementation of the trade regulation law's provisions. Anti-monopoly divisions perform this work continuously. Over 100 audits were conducted in the second quarter, 4,500 contracts were analysed and over 460 violations were exposed. These include exceeding authorised bonus ceilings, stipulating additional types of remuneration and marketing, advertising and other services in specific contracts and stipulating payment deferments in violation of the law. Over 50 cases have been instituted over these violations. Administrative proceedings have been instituted against more than 20 commercial entities, and fines exceeding two million roubles have been imposed. However, such measures are not enough to ease agricultural producers' access to the market. We need to identify and eliminate barriers in the wholesale segment and take additional measures to promote cooperative forms of selling. I would like to ask the Ministry of Industry and Trade and the relevant departments to analyse these sectors and submit their proposals on improving their operation."

Participants in the meeting also reviewed amendments to the trade law which were drafted per the working group's instructions in an effort to more effectively implement the law.

After the meeting, Mr Zubkov instructed his subordinates to prepare materials for a government meeting aimed at eliminating disagreements over the above-mentioned amendments.

"We must take into account the opinion of relevant executive and legislative bodies, representatives of the agricultural and trade sectors, representatives of public-political organisations, specialised trade unions and working group members. We should amend the law in the most cautious manner. We must consider and weigh all aspects of each amendment, so as not to upset the balance of agricultural producers' interests and those of the trade sector and consumers," Mr Zubkov said.