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Some of the largest retailers are already using revised supplier contacts that are in accordance with the norms of an impending trade law. The trade law, released two weeks ago by the government presidium, is still awaiting its first reading in the Duma (set for September). It would also need to pass the Federation Council, and be signed by the president. If the document is able to pass all these stages without any delays, it would come into force by January 1, 2010. The leader in Russian retail sales by earnings – X5 Retail Group – is revising all of its supply contracts and is preparing to eliminate paid services that are not permissible under the new bill. These include advertising services, the installation of specialty equipment in commercial areas, or payments to keep products faced, says the group’s executive director, Lev Hasis. If the bill passes, the only compensation that a retailer may receive from a supplier is a bonus for the volume of goods it purchases. The size of the bonus would need to be stipulated in the contract. A retailer would not be permitted to demand exclusive deliveries from suppliers, to accept payment for including a certain product in its store, or for changing its assortment of goods. It would also be unacceptable for retailers to ask for information on contracts that the supplier has with other retail companies. Alinga Consulting Group

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