3 april 2012

First Deputy Prime Minister Viktor Zubkov holds a regular meeting of the working group on implementing the law On the Principles of State Regulation of Commerce

Participants:

The meeting participants reviewed the state of commercial trade in Russia and the results of the implementation of the Federal Law On the Principles of State Regulation of Commerce for 2011 and the first quarter of 2012.

"Last year the growth in retail trade turnover continued. It was over 19 trillion roubles, up 7.2% from 2010. What's more, the share of domestic goods in retail trade went up to 57% (compared to 56% in 2010). The proportion of food products imported fell to 33% (in 2010 it was 34%). The rate of inflation for 2011 was 6.1%, the lowest it's been since 1991," Viktor Zubkov said, presenting the statistics.

"The figures also confirm that the law has enabled the main issues it was designed to address to be resolved. These are the steady development of the commercial infrastructure, simplified access to the market for Russian manufacturers, and the taking into account of the interests of end consumers," the first deputy prime minister underlined.

Since 2010 the implementation of the law and the growth of commercial activities have been constantly monitored by the government. The main problem areas are regularly discussed at meetings of the working group, as well as via teleconferences with the heads of the regional executive bodies. Based on monitoring the practical application of the law on trade and on the results of inspections carried out by the Federal Antimonopoly Service (FAS), we have identified the need to clarify and amend certain provisions of the law. The relevant draft bill has been prepared by the FAS. "There are differing views on this draft bill. By the end of this week I will hold a meeting to iron out these differences," the first deputy prime minister said.

Viktor Zubkov said that work had been completed at the regional level on the adoption of the regulations needed to implement the law on trade.

"The largest increases in trade in 2011 were in the Republic of Ingushetia (30.6%), the Chechen Republic (26.6%), the Udmurtian Republic (12.6%), the Voronezh Region (17.4%) and the Arkhangelsk Region (12.2%)."

As part of the implementation of the programme to develop trade in the regions, Viktor Zubkov said that particular attention should be paid to raising the share of Russian food in the retail market, as well the growth of small and medium-sized retail business and measures to provide retail services to the rural population and strengthen consumer cooperatives.

Members of the working group discussed the state of affairs in trade and trade procurement in the consumer cooperatives, and also looked at the issue of improving the provision of retail services to the rural population.

Consumer cooperative organisations provide commercial and consumer services to 89,000 rural villages including 54,000 villages with populations of less than 100. There are around 46,000 shops in the Central Union of Consumer Cooperatives, with 83% of these (more than 38,000) in rural locations. More than 700 mobile consumer cooperative shops provide retail services to small rural communities.

"A range of measures aimed at developing retail and consumer services to rural locations has been provided in the federal targeted programme The Social Development of Rural Areas," the first deputy prime minister said. "However, from 2011 there are no objective financial targets specified in the programme to implement this policy area," Zubkov said.

Summing up the results of the discussion of the main issues in the development of the commercial infrastructure in rural locations, Viktor Zubkov instructed the Ministry of Agriculture to submit proposals to the federal government on how the work could be improved.