Anna Sisetska, counsellor with Vasil Kisil & Partners, spoke on supply agreements with retail chains at the FMCG Industry Forum on February 24, 2015 in Kyiv.

In her report, Anna gave a detailed outline of the practical aspects of the execution and performance of supply agreements and raised the questions of the provision by retail chains of marketing services to manufacturers and suppliers. In this context, she evaluated the prospects of the so-called “cartel case” instituted by the Antimonopoly Committee of Ukraine against retail chains in Kyiv. She also focused on the practice where tax authorities challenged in court the expenditure structures and tax credits formed by suppliers.

On top of that, Anna spoke on such issues as formation and revision of supply prices, delay of payments, and return of goods not sold by retail chains to their suppliers. These issues, as well as those related to payment of bonuses and payment of penalties for a breach of the terms and conditions of supply agreements with retail chains, prompted lively discussions among forum participants. To add to that, Anna initiated a public discussion on the subjects of the most common conflicts between suppliers and retail chains, suggested optimal ways and mechanisms for resolving them, and urged the market participants to seek a compromise and balance their interests in order to ensure the potential for effective functioning of the retail market in Ukraine.

The FMCG Industry Forum is an annual event gathering together FMCG suppliers, distributors and retailers, as well as professional advisers, to discuss key problems plaguing the industry, to search for solutions to such problems, and to exchange practical experience.

Presentation (in Russian): http://www.slideshare.net/VasilKisil/fmcg-forum-sisetska

Anna Sisetska Speaks on Supply Agreements with Retail Chains