Russia's FAS Started Anti-cartel Inspections of Butter Producers

Russia's FAS Started Anti-cartel Inspections of Butter Producers
Photo: unsplash.com 06.12.2024 219

The inspections were initiated in connection with citizens' appeals about price increases.

The subject of the inspections is compliance with the prohibition on anti-competitive agreements, which may result in, among other things, the setting or maintenance of prices.

Unscheduled on-site inspections are being conducted in respect of seven companies in Moscow, Omsk, Izhevsk, Barnaul, Vologda and Sverdlovsk regions. The companies are producers of dairy products, including butter.

FAS of Russia will make final conclusions after the results of inspection measures and analysis of all the information received.

On November 5, Minister of Agriculture Oksana Lut in an interview with “Vedomosti” explained the rise in butter prices by the increase in demand caused by the increase in wages, which led to temporary imbalances in the market. 

To stabilize the situation, the Ministry of Agriculture expanded butter imports from friendly countries such as India, Iran and Turkey, increasing supplies by 20%. 

At the same time, the rise in production costs due to higher logistics and packaging costs has also affected the price of the product. 

The Ministry of Industry and Trade reported that retail chains and producers, such as Econiva, began to reduce selling prices for butter, which affected prices in stores.

Sources:FAS, Vedomosti

food markets  Russia 

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