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Large Russian retail chains cannot enter the occupied Crimea
Russian federal retail chains are actively studying the Crimean market with a view to entering the occupied peninsula. Specific dates for the opening of chain stores in the TOT of the Autonomous Republic of Crimea are not mentioned, but preparations are underway. This was reported by Alina Dikaya, "Head of the Department of the Ministry of Industry and Trade of the Republic of Crimea" on the air of the Russian occupiers-controlled Radio Crimea.
"There are certain problematic issues. First, it is complicated logistics and the lack of large logistics centers in Crimea. Only recently this problem has begun to be solved, and logistics centers have already been built. And secondly, there is a shortage of free retail space that would be suitable for federal retail chains, as each of them has its own concept - a convenience store or large shopping center areas. Over the past 11 years, the trade sector in Crimea has developed quite a bit, and all the most attractive retail facilities have already been occupied. Therefore, this issue can be resolved by building new retail outlets or through the acquisition of regional retail chains," she said.
Dikaya also added that the Crimean "Ministry of Trade" receives daily requests from residents of the occupied region to organize the work of federal retail chains on its territory.
It is noted that this desire is mainly dictated by the difference in prices for the same groups of goods in Crimea and on the territory of the occupying state, but the logistics component, which significantly affects the final price of goods, is not taken into account.
"This danger exists because we have a market economy in the Russian Federation, and no one has canceled the law of competition. However, it will also be quite difficult for federal retail chains to enter our market, because this niche is already well occupied by local regional chains. Perhaps dumping will be one of the options for them to attract customers. We will see how much federal chains will use such methods," the representative of the Crimean "Ministry of Trade" summarized."
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