Anti-monopoly restrictions on the expansion of large retail chains to be temporarily lifted

A law* temporarily lifting restrictions on large retail chains to expand their business (the “Amendments”) has been adopted.

Russian law* currently prohibits retail chains with a market share of more than 25% from acquiring or renting additional retail premises. If this prohibition is violated, the transaction may be declared invalid by a court.

According to the Amendments, this restriction will not apply from 15 June 2022 to 31 December 2022 inclusive to acquisitions of retail chains and leases of space in retail facilities from foreign companies leaving the Russian market.

The exemption from the restriction is valid if the following conditions are cumulatively met:

• the retail chain to be acquired is controlled by a foreign legal entity; and
• the owner of the acquired retail chain has ceased to operate in the Russian market or declared a cessation of activities.

The Amendments are designed to keep businesses in Russia that have been threatened with closure by allowing large retail chains to acquire additional space and further strengthen their presence in the market. 

The changes come into force on 15 June 2022.

* In Russian

Co-authored by Kristina Potapova, Associate, and Elena Andrianova, Senior Associate.