Last week was marked by adoption of the long-suffering Law On Trade. On Wednesday the State Duma discussed it at the second reading, and on Friday it was adopted at the third and last reading.
However, the disputes about the Law between the Kremlin and the White House continued at the beginning of the week. The State Legal President’s Administration didn’t particularly like the new bans for the trade networks: to take any bonuses except the one for the 10% volume from the suppliers and to open new stores in case the network’s share at the municipal district exceeds 25%. It was also announced that the term of the Law effectiveness might be postponed for a month, i.e. till February, 1st.
As a result, the government won in the fight with the President’s Administration – a series of its fundamental remarks to the Bill on Trade wasn’t taken into account. The Law was expected to be finally adopted in two readings on December, 16th, and signed by the President till the end of the year.
After the President’s Administration made the amendments to the current edition of the project, it turned out to deprive the regions of their hope to control the networks’ development and to give all these authorities to the government.
There also appeared the information that Prime Minister Vladimir Putin considered the Law On Trade to be adopted in the current edition forbidding to exceed 25% presence of a trade network in a region.
At the second reading on Wednesday the deputies voted for adopting the Bill On the State Regulation of the Trade Activity. The morning discussion of the Law had to be interrupted due to the government and Central Bank’s report about the measures of supporting the financial market. However, in the evening the Bill was adopted quite promptly and without any surprises. The Russian retailers considered this fact as their defeat.
At the third final reading on Friday the State Duma adopted the Law On the State Trade Control. The first reading adopted the Bill On Trade on September, 11th, the second one – on December, 16th. The Law effectiveness term is February 1st, 2010. The Law is aimed at creating the transparent conditions of co-operation between suppliers and retail networks. It also contains rather strict norms of antimonopoly regulation. 348 deputies voted in favour of the Bill, 52 deputies voted against it.
On December, 11th the Auchan company launched its first Russian discount cashier-free store Raduga. The object started in Penza. According to the company’s information, the investment in its opening estimated 3 million euro.
According to the action of Pervaya Ekskalatorno-Liftovaya Company Ltd the Arbitrage Court of the Krasnoyarsk region acknowledged the bankruptcy of ALPI Public Company. Its assets are to be sold out till May 10th, 2010. The ALPI leaders assured that the bankruptcy wouldn’t affect the group’s retail business transferred to the ALPI-trade company.
MDM Bank invested 1.5 billion rubles in developing the Siberian retailer Sistema Regionmart (more than 160 stores in Siberia trademarked Polyana and Chibis). After merging with URSA-Bank, the retailer’s co-owner and creditor, MDM became the owner of the company’s control stock.
According to the management report in November, 2009 the gross trade receipts of the Seventh Continent company came up to 4257 million rubles or $147 million. Compared with November 2008, the growth accounts for 14% in rubles. The trade receipts for January-November 2009 came up to 43412 million rubles or $1367 million.
On December 17th, 2009 The Seventh Continent Public Company paid off the whole fifth coupon of the second-issue bonds dated December 26th, 2006. The annual coupon interest rate accounts for 7.8%. Conditions of the bond issue stipulate a 6-month coupon period.
Alexander Zaribko and Vladimir Katsman, the founders of Victoria network, couldn’t find buyers for their shares in the company for purchasing 5% of the network from Renaissance Pre-IPO Fund and East Capital at the put option this year. The funds prolonged the agreement with the businessmen for 2 years keeping the previous conditions: not later than in December, 2011 Victoria has to hold IPO or buy out the shares of Renaissance Pre-IPO Fund and East Capital.
The Federal Antimonopoly Service allowed the Cyprian offshore Efkarpos Enterprises Limited to buy 100% of the Kopeika retailer shares. It was possibly done for selling itself to Wal-Mart.
X5 Retail Group N.V. declared paying off the whole Paterson-Invest Ltd. obligation issue. The whole size of the retirement came up to 1386.6 million rubles including the technical retirement of the bonds earlier bought for 386.6 million rubles by other companies from the Paterson group. Moreover, X5 paid the coupon income a 43.2 million rubles to the obligation holders.
After Oleg Zherebtsov, the owner of the Lenta hypermarkets, sold his share in the company, the holding started changing its leaders. The successor of August Mayer, the main shareholder, became a leader of the board of directors. Dmitry Kosygin was appointed the new chairmen of the board of directors of the Lenta hypermarkets.
It also became known that two Apple Shop stores are to open in Moscow. These will be the first Apple stores in Russia: the employees of its Russian office will be the sellers, and the whole furniture, equipment and promotional materials will be its property. Apart from the American Apple Store taking a separate area, the Moscow stores will be located at the mobile stores “Belyi Veter Tsifrovoy”.
The absence of iPhone 3GS at the Russian retailers’ shop windows made both Apple and the Big Three operators to be more compliant. MTS was the first company to settle the supply of iPhone 3GS to Russia, Vympelkom and Megafon will also hold the negotiations with the American corporation. The experts consider this action to be rather a matter of image: at a minimum price of 30 000 rubles the sales might account for not more than 25 000 telephones.
There appeared the information that after recalling the mutual actions a 1.5 billion rubles in total MTS and Euroset might resume their co-operation broken with a scandal this April. MTS takes part in a tender for signing a marketing agreement a not less than $216 million. MTS might already return to Euroset from the New Year.
The cosmetic and perfume network Rive Gauche, which only opened its first store in Moscow last year, declared its plans to launch not less than 30 Moscow objects in 2010. In total the retailer is going to open about 30 stores next year.
The Top-Kniga company performed the last payment according to the agreement on restructuring the obligation lend a 1.5 billion rubles issued in 2006 and also paid off the 6-month coupon.
The apothecary network 36.6 informed that it was ready to sell the additional issue bonds at price 8 times lower than the market one. After this the retailer’s shares became cheaper at 8.68%.
It also became known that in 2010 the furniture network Kika is to open at least 4 stores, one of them will be located in Rostov-on-Don. The furniture retailer will take the area at the trade and entertainment center Gorizont in Rostov, which earlier were taken by the SantaHouse store.
The digest was prepared by Retailer.RU and was translated by iTrex company. Itrex is a translation bureau. It offers written and oral translation, notary certification and a lot more. Itrex does work with every language: European, Eastern languages and others. Itrex does work with every topic: technical, legal, financial, business, etc.