Timophey Nizhegorodtsev discussed the major issues of regulating the maximum mark-ups to the prices for life-saving and essential medicinal drugs

On 3 March 2016, the Head of FAS Department for Control over Social Sphere and Trade, Timophey Nizhegorodtsev, took part in a workshop with the Heads of the regional tariff bodies. Mr. Nizhegorodtsev gave a report on regulating the maximum wholesale and retail mark-ups to the prices for life-saving and essential medicinal drugs.

Timophey Nizhegorodtsev reminded that on 1 March 2016 FAS was assigned the powers for coordinating regional maximum wholesale and retail mark-ups to the ex-works prices for life-saving and essential drugs. A relevant order was signed in February 2016 by Prime-Minister Dmitry Medvedev.

In accord with the amendments that came into force, the regional tariff bodies now are obligated to submit draft decisions on fixing or changing the maximum markups to the prices for life-saving and essential drugs to FAS for approvals.

Changes in the procedure for coordinating regional mark-ups were not the only focus of the report by a FAS top officer. The Head of the Department for Control over Social Sphere and Trade also outlined the main issues of mark-ups regulation.

Among them Timophey Nizhegorodtsev highlighted imperfect methods of mark-up setting, incorrect VAT estimates of wholesale and retail mark-ups, and fixing mark-ups in percentage to prices.