Russia’s X5 asks suppliers to cut prices 10% due to stronger ruble

MOSCOW, Mar 1 (PRIME) -- X5 Retail Group, the owner of grocery chains Perekrestok and Pyaterochka, has asked suppliers to reduce purchasing prices by 10% due to strengthening of the ruble, according to the company’s letter seen by PRIME on Wednesday.

“The dollar rate has recently decreased to 59.5 rubles from 60 rubles (10%) and the euro rate fell to 63.5 rubles from 72 rubles (12%). Due to this we ask to reduce purchasing prices by 10% from the current level from March 15, 2017 and provide an answer in a written form by March 1, 2017 (Wednesday). In case the answer is not provided, we keep a right to revise terms of our cooperation,” the letter said.

The company said that talks on a price reduction are a standard practice in the market pricing mechanism.

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