Rusagro announces extension of sugar and sunflower bottled oil price freeze31.03.21
On 30 March, 2021 Government of Russian Federation published Decree dated 27 March, 2021 “About changes in article 7 of Decree of Government of Russian Federation dated 14 December, 2020 No 2094”, which extends Agreements on sugar and sunflower bottled oil prices freeze, signed on 16 December, 2020 by large federal retail chains, producers, Ministry of Agriculture, Ministry of Industry and Trade and industry unions.
Price fixation of bottled sunflower oil at the level not exceeding 110 RUB/liters including VAT in retail and 95 RUB/liters including VAT at the plant is now extended to 1 October, 2021. Price fixation of sugar at the level not exceeding 46 RUB/kg including VAT in retail and 36 RUB/kg including VAT at the plant for sugar in bags is extended to 1 June, 2021. Previously signed Agreements fixed prices until 1 April, 2021. There have been no other changes to the clauses of the Agreements.
Rusagro’s companies will continue to comply with the Agreements, as they did in the first quarter of 2021. Average quarter sale volume to retail chains will not be lower than average sales volume in the first quarter of 2020. Both prices have been fixed below market level. Rusagro estimates its monthly lost profit at the level of 200 million roubles. Company believes that continued price control by the Government may lead to negative economic consequences.