The Far frontier: the deadline for concluding agreements on the stabilization of prices for goods has been extended until 2030

The government decided to keep the mechanism in place, allowing regional authorities, retail chains and manufacturers to agree on measures to keep prices down until the end of 2029. Why the decision was made to extend the mechanism, and whether the possibility of extending it to new categories of socially significant goods is being considered, is described in the Izvestia article.

Results of the initiative

The changes relate to the mechanism of temporary price regulation implemented through agreements between regional administrations and enterprises of various industries, the FAS press service reminded Izvestia. As of October 2025, similar agreements are already in force in 71 constituent entities of the Russian Federation. Since the tool has demonstrated effectiveness and has become widely used at the regional level, it was decided to extend its validity period until December 31, 2029.

Photo: IZVESTIA/Pavel Volkov

The extension of the price stabilization agreements until December 31, 2029 is primarily intended to protect the interests of buyers, Olga Pozdnyakova, head of the Popular Front, told Izvestia. Analytics". Usually, inflationary costs are fully shifted to the consumer, which is expressed either in an increase in prices or in a decrease in the volume of goods while maintaining the same value. The mechanism of such agreements makes it possible to balance the burden and distribute inflationary risks between producers, retail chains and the state.

"Regular monitoring of prices for the same goods included in the agreement allows us to control the terms of the agreements," she said. — Since many retail chains have a digital analog with the ability to buy online and order delivery, it is possible to control it in digital format. Customer feedback can also help identify cases of overcharging or other violations. In case of violation of the agreements, penalties may be imposed on manufacturers and retail chains.

Photo: IZVESTIA/Andrey Erstrem

According to her, it is important to consult with manufacturers, retail chains, and consumers to identify products relevant for inclusion in price stabilization agreements.

The main and most effective price control mechanism is developed competition in market conditions, Stanislav Bogdanov, Chairman of the ACORT Presidium, told Izvestia. It stimulates price reduction and improvement of product and service quality.

Into one basket: FAS will deal with marketplaces

The Service has been instructed to prepare relevant draft laws.

— Over the past year, the average margin on essential products in online retail has halved, to a historic low of 3-3.5%. This confirms retailers' responsible approach to pricing within the framework of self—regulation, which retail chains will continue to follow," he said.

Photo: IZVESTIA/Sergey Lantyukhov

According to him, the system for preventing unjustified price increases is based on an integrated approach that includes constant monitoring and transparent interaction between businesses and government agencies. At the same time, the competitive environment and natural market instruments remain the leading factor. It should be borne in mind that direct interference in pricing and the size of margins distorts market principles, limiting companies in investing, expanding their product range, maintaining affordable prices and developing their activities.

Compensation of conditions

Any artificial price restraint can negatively affect the situation of producers, especially in situations where they are unable to compensate for rising costs by selling other products, Natalia Shagaida, director of the Center for Agri-Food Policy at the Institute of Applied Economic Research (IPEI), told Izvestia The Presidential Academy. Thus, after the establishment of fixed prices for refined deodorized oil at the end of 2020, the cost of an unrefined product immediately increased, which became a clear illustration of the redistribution of financial pressure.

— Manufacturers agree to stabilization only in two cases: if their cost price falls within a given range, or if they can shift the cost increase to other, unregulated products. In other situations, they simply reduce or discontinue the release. Then the state has to intervene — to subsidize or actually force the production of certain items, otherwise the enterprises become unprofitable," she said.

Photo: RIA Novosti/Nina Zotina

Retail chains in such circumstances act according to a similar logic, the expert added. When the sale of certain goods becomes unprofitable, they seek to cover the losses by increasing prices for other categories or eventually reduce the share of regulated products in their offerings.

"There are 24 socially significant products on the list today," she said. — Their prices are under state control, in addition, the authorities are trying to curb price increases by maintaining a reduced VAT rate on a wide range of goods. Large retailers also maintain a minimum mark—up range, a kind of social basket. These positions are often unprofitable, but they are considered an element of corporate social responsibility.

On equal terms: A new five-year competition development plan has been developed in Russia

The initiative aims to remove existing barriers to business

However, price control at the final stage of the supply chain turns out to be ineffective if the costs of raw materials and resources increase in parallel, Natalia Shagaida emphasized. The development of a competitive environment remains a truly sustainable tool for stabilizing the value of goods. International practice confirms that administrative measures can provide temporary relief, but in the long run they lead to a distortion of market mechanisms and a decrease in economic efficiency.

Photo: IZVESTIA/Andrey Erstrem

The extension of this policy will continue to put pressure on the economic performance of manufacturing enterprises and retail chains, mainly reducing their profitability, Ekaterina Shchekina, Associate Director for Corporate Ratings at Expert RA agency, told Izvestia. As a result, businesses face constraints when trying to offset rising costs — for personnel, transportation, rent, and other operational needs — by increasing retail prices.

"Quality control of the implementation of this measure can be expressed in the form of requests from the Federal Antimonopoly Service for individual food products, actual volumes and prices both in purchase and sale," she explained. "To mitigate the negative impact, manufacturers and retail chains will continue to improve the efficiency of internal processes and, if possible, focus on high—margin products.