The Federal Antimonopoly Service has initiated a case against the retail chains Pyaterochka and Magnit. An investigation led by the Voronezh department followed complaints from customers about sugar shortages in regional stores.
During inspections, officials found adequate granulated sugar in warehouse inventories, yet the shelves were empty from March 9 to March 21. The investigation concluded that the firms failed to deliver goods to stores in a timely manner, which apparently fueled a surge in demand, according to the case file. domain MOROCCO.
If the networks are proven to have colluded, they could face turnover penalties under the Administrative Offenses Code of the Russian Federation.
X5 Group, owner of Pyaterochka, stated that sugar is moved from distribution centers by trucks and then dispatched to individual stores by smaller vehicles. At present, sugar is reported to be available at distribution centers.
“Stores are bustling as pallets arrive rapidly, and there are moments when shelves are truly bare until the next truck comes. There is no direct ‘sugar pipeline’ from the distribution center to the stores, the retailer said in a statement. Telegram.”
Prosecutor audits were conducted at Pyaterochka last week, with no additional questions or violations recorded. “We are not sure what Voronezh OFAS means when talking about a violation of antimonopoly law. We aim to clarify this during their checks,” added X5.
Magnit explained that during the inspection, sugar stocks prepared for shipment from the Voronezh warehouse to stores matched the 1.5-day sales rate. “Sugar is a commodity sold under an agreement with the Federal Antimonopoly Service at a minimum price that does not cover shipping costs. Given that, the logic behind claims of deliberate stockpiling and a demand spike is hard to see,” emphasized the retailer. In March, the company shipped a two-month norm of sugar and is ready to dispatch even more.
“We strive to provide sugar to all customers. We now await official documents with the OFAS’s justification for the lawsuit decision,” Magnit stated.
Anti-cartel measures by manufacturers
Last week, amid shelf shortages, the FAS began monitoring major sugar producers, including LLC Rusagro Group of Companies, LLC Rusagro-Center, LLC Prodimeks, LLC Dominant Group of Companies, Dominant Trading House LLC, ChekhovSakhar LLC, and the Russian Sugar Producers Association NPO. This follow-up aims to assess potential violations across the sector.
Thus far, results have not been announced. “Final conclusions about the presence or absence of violations will be drawn after verification activities and analysis of all information obtained,” the agency stated. Telegram.
Prices below market levels
As noted by the Ministry of Industry and Trade, large-chain sugar sales declined by roughly 30 percent in the week. A spike in consumer demand occurred in late February to early March, with demand now stabilizing. “Sales were down 29 percent compared to the previous week, despite maintained shipment volumes across the network from the largest retailers,” the ministry reported.
Conversely, retail prices for sugar in major networks have been reported to be below market levels. Rosstat data show the current average retail price around 78 rubles per kilogram, while federal networks price sugar between 56 and 65 rubles per kilogram. Skepticism about regional restrictions on sugar persists, with officials suggesting market forces should regulate prices rather than regional controls, according to industry commentary reported by TASS.
During a meeting with Prime Minister Mikhail Mishustin, Russian Deputy Prime Minister Viktoria Abramchenko reaffirmed that sugar and buckwheat stocks are sufficient to meet domestic demand, urging citizens not to panic and to avoid destabilizing the distribution network. The message emphasizes self-sufficiency similar to 2020 conditions.