Introduction of the Governmental Commission for struggle against illegal production and distribution of alcohol. (2014-07-11)

According to many requests of our Union directed to the President of the RF V.V. Putin, the Chairman of the Government D.A. Medvedev, the Head of the Federal Service for Alcohol Market Regulation I.P. Chuyan about improper performance of the Anti-Alcohol Concept, lack of the market regulator’s practical mechanisms for brewing companies working towards the development of illegal market that will be equal to the illegal vodka market at the nearest time, we decided to introduce the Governmental Commission for struggle against illegal production and distribution of alcohol products.

You can find information about our Union’s position in the analytical article “Licensing of beer production, circulation and retail sales – what for?” – 18.02.2014.

The Federal Service for Alcohol Market Regulation within their powers adequately responded to the position of our Union. They take steps to improvement of legislation concerning production and circulation of alcohol products but as for interdepartmental interaction – consensus procedures are as a rule delayed. The typical example of the dishonest interdepartmental interaction of a number of government institutions with the Federal Service for Alcohol Market Regulation is an attempt to avoid the current Russian law binding to use 80% of malt in beer production in order to support transnational companies.

At present the situation in the alcohol market is rather criminal created by the unfair market participants who either evade taxes or produce illegal alcohol and distribute it at prices below fixed minimum limits. It is dictated by high excise rates, decline in production that finally leads to reduction of budget revenues.

So, we observe a rapid increase of illegal production and circulation. And all above mentioned facts reflect the necessity for taking prompt measures in order to change the situation for the better.

The Federal Service for Alcohol Market Regulation has to amend the Law “Concerning the State Regulation of Production and Circulation of Alcohol Products”.

Besides, the following legislative acts need to be corrected and added: fiscal legislation, budget legislation, drug circulation law, the Federal Law “On Protection of Legal Entities and Individual Entrepreneurs in the course of the State and Public Control”, criminal law, administrative offences legislation and other normative legal acts.

Our Union is creating an analytical note about the situation in the brewing market of the RF, including the list of companies working towards the illegal market that will be studied by the Government during the first session of the Governmental Commission for struggle against illegal production and distribution of alcohol.

You can find more detailed information here.

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