ADMONITION TO “MISTRAL TRADNG” FOR ITS INTENTION TO INCREASE BUCKWHEAT PRICES

System-wide efforts of FAS and Moscow Prosecutor’s Office on the food markets revealed that “Mistral Trading” Ltd. planed to raise rice and buckwheat prices

The company notified retail chains on increasing ex-works prices for domestic buckwheat and rice by 25 % and 12 % accordingly. The company threatened to stop supplying goods if retail chains refused to agree upon the new prices.

According to the information obtained through an inspection organized by FAS with regard to “Mistral Trading” Ltd., the company does not have objective grounds for such an increase of the costs of domestic cereals. Currency rates fluctuations lately also cannot be a reason for such significant growth of prices for domestic products.

At the extended session of the Collegium of the General Prosecutor’s Office of the Russian Federation on 17 March 2020, the President of the Russian Federation set a task to continue, jointly with FAS, the efforts to counter violations in the field of food products pricing under the conditions of the new coronavirus infection propagating in Russia. Fulfilling this task, Moscow Prosecutor issued an admonition to “Mistral Trading” Ltd. that violating the Federal Law “On Protection of Competition” is unacceptable.

Head of FAS Anti-Cartel Department, Andrey Tenishev emphasized: “The conduct of “Mistral Trading” can be described only as an attempt to gain super-profit in the hard situation for the population. Boycott of deliveries to federal retail chains by such larger suppliers can generate shortage of goods and uncontrollable, panic demand, which subsequently can cause a leap in prices. It shall not be tolerated so FAS and the public prosecution bodies react to such incidents in a consistent manner”.