A regulation issued by the Russian government banning foreigners
from any type of retail activities in Russian markets has been
abolished in Moscow, from yesterday, according to reports from
Chinese Business News.
Published last December, the regulation forbids foreigners from
selling alcohol and medicine in Russia from January, and bans them
from any type of retail sales in Russian markets from April 1.
A municipal government official told local reporters that
foreign retailers could return to markets from February 12 since
the first phase of the ban had had a damaging impact upon retail
markets.
But Chinese sellers have already felt the impact.
Many Chinese retailers had been forced to reduce their prices in
the weeks leading up to the New Year as they prepared to move home
prior to the new rules coming into effect. A large market in
Moscow, previously dominated by Chinese merchants, was nearly
closed.
It is unclear how long it will take for Chinese sellers to
recover in Moscow and whether other regions will follow suit, the
reports said.
Rules banning foreign retailers, approved by Russian President
Vladimir Putin, were implemented to foster job opportunities for
native Russians and to curb organized crime, the government said at
the time.
The results went a little awry as prices for meat and vegetables
spiraled up and Moscow markets saw a 70 percent vacancy
rate.?
The gap left by the thousands of foreign retailers is far too
large to be filled by local people. A stall once valued at
US$20,000 is not struggling to for a tenth of the price, news
reports said.
Nearly 60 percent of Russian citizens said they did not benefit
from the ban as it affected products, prices and services.
(China Daily February 13, 2007)
