Price regulation: novelties

On October 19, 2022 the Government Resolution No. 669 “On temporary measures to stabilize prices" was abolished and a new Resolution No. 713 “On the price regulation system” is in force.

The main provisions:

1. The price regulation for consumer goods according to the list (food, shoes, clothing, tableware, furniture, electrical goods, cars and spare parts, building materials, etc.) has been introduced.
2. The maximum markup of importers, wholesale markup, trade markup (including wholesale) are set - the range for the list of goods is from 15% to 60%.
3. The exports and tariffs for services are not regulated by the Resolution No. 713.
4. The manufacturers agree price increases (setting prices for new goods) in comparison with the prices formed considering the maximum wholesale markups with the state bodies. There is no need to agree: 1) when returning to the previous price level at the end of discounts, promotions; 2) when selling to new buyers or when the price changes with previous buyers at prices/ up to the level of prices that were in effect before 19.10.2022; 3) when prices, tariffs regulated by state bodies, taxes and other obligatory payments included in the cost price are increased; 4) on the prices of new goods when they are increased within 10% of the profitability standard.
5. From 10.11.22 the list of goods required to be available in a retail facility is agreed with the state bodies.
6. From 01.01.23 the exchange of goods without receipt of money (barter, exchange, offset, novation, compensation) for both consumer and non-consumer goods is prohibited. Exception: foreign trade operations, operations within the holding company, by agreement with the state bodies.
7. Prohibition of remuneration when supplying Belarusian goods to retailers (including for the volume of purchases, their promotion).
8. In the invoices are required to indicate: the selling price, the type of discount (from the selling price, wholesale); wholesale markup; other information about the price structure, as defined by the Ministry of Finance. Violation - a fine of up to 10% of the delivery amount.
9. Agreement of the state bodies is not required for separately regulated prices (for alcohol, tobacco, fuel, medicines, etc.).
10. The new regulation does not apply to: a) duty-free stores; b) goods used in the production process, except for certain goods for processing, the prices of which are regulated by the Ministry of Agriculture and Food in coordination with the Ministry of Antimonopoly Regulation and Trade (raw milk, rye, wheat, sugar, etc.).

There remains uncertainty with the application of the new pricing procedure and the Directive No. 10 of October 6, 2022, paragraph 1 of which prohibits price increases from October 6, 2022, except in cases determined by the regional executive committees (Minsk City Executive Committee) together with the minister of Antimonopoly Regulation and Trade and industry ministers.

In case you need additional information and/or comments on the mentioned above changes in price regulation, we will be happy to advise you. 

Please contact our managing partner Konstantin Mikhel (konstantin.mikhel@vmp.by)