X5 urges Putin to scrap regional grocery chain cap

Russia's largest retailer X5 has asked President Vladimir Putin to abolish the 25% market share cap limiting grocery chains from expanding within municipalities and regions, citing threats to food supply stability from infrastructure attacks. The proposal, sent August 11, also suggests lowering the dominance threshold from 35% to 25%. Presidential aide Maxim Oreshkin recommended the government consider removing the regional cap while keeping it for municipal districts, with flexibility to raise limits case-by-case. The 2009 law restricts chains from acquiring new retail space once they exceed 25% of local food sales. Producers oppose the change, warning it could reduce competition and increase supplier dependence on monopolistic retailers.