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11 December 2009 By Jason Bush

Controversy surrounds planned antimarket legislation on Russia’s retail sector, including foodprice controls and curbs on acquisitions. With premier Putin backing the populist law, President Medvedev’s own commitment to lightening the load on business is being tested.

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Russia's Law on Trade is due to be discussed by Russia's parliament on Dec. 11. Parliamentarians have indicated that the law may be passed, but a further delay is also possible. The law's crucial second reading was originally scheduled for Dec. 9 but was deferred by two days.

The legislation has prompted strong criticism from senior Kremlin officials. On Dec. 8, presidential economic advisor Arkady Dvorkovich said there are "many problems", and 7 to 10 days would be required to rework the law.

The draft law restricts the market share of any food retailer to 25 percent in any municipality. It also limits the bonuses that suppliers pay to retailers at 10 percent and forces retailers to publish a list of suppliers and purchasing prices.

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