New Government Markup Restriction on Products

by Olha Povaliaieva
Tuesday, January 4, 2022
New Government Markup Restriction on Products

On December 30, 2021, the government of Ukraine introduced the regulation of the cost of new foodstuffs from the food list

The new government resolution supplements a list of socially significant products that must be declared in advance. In addition, government officials will control the price of products. The list of new products under the control of the highest executive authority of Ukraine now includes bread and sunflower oil.

"The list of social goods approved by the government resolution of 22 April 2020 shall be supplemented by the following paragraphs: baton and sunflower oil," as stated in the official statement of the government.

Under the new law, value increases must be reported to the State service for food safety and consumer protection. The economic entity must notify the public authority:

  • For 30 days in case of a price increase of more than 15%;
  • For two calendar weeks, a surcharge of 10-15%;
  • Three days before it went up to 10%.

In addition, the cost of rye-wheat bread will further be controlled by the public service. The Ordinance limits the possible retail margin. From 2022 it must not exceed 10%. This calculation has already taken into account marketing, logistics, packaging, and processing services.

The order is temporary, it will remain in effect until the end of the quarantine imposed in the context of the coronavirus pandemic.

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