Russia Bans Import Of Wines And Spirits From Moldova
News: Russia has banned the import of wine and spirits from Moldova over quality concerns, reports DBR. The ban, which came in to effect from September 11 2013, precedes an agreement between the European Union and Chisinau, Moldova set to take place in November 2013. The Russian watchdog Rospotrebnadzor claims that 1% of products from Moldova have undergone national quality control, which were available to buy in Russia in 2013. Rospotrebnadzor has said it was forced to issue the ban because the Moldovan state either ignores the issue of quality standards or demonstrates that it can do nothing about it.
BMI View: We reiterate our bullish outlook on the Russian retail sector, as rising incomes combined with expansion into the east of the country will benefit companies operating in the sector. We also expect an increasing focus on convenience for shoppers in Russia's bigger cities. We highlight our favourable view on London-listed O'Key, whose upscale business model fits well with our view on developments in the market, as a potential alternative to discounter Magnit.