Maximum prices of medicines and medical devices can be set by government during epidemics

30/03/2020

On 26 March 2020, a Federal Law* came into force allowing the Russian government to set maximum prices for any medicines and medical devices for up to 90 days in case of an emergency or the threat of the spread of dangerous diseases (including COVID-19). According to the new Law, if after 30 days of monitoring retail prices for pharmaceuticals and medical devices the government detects price increases of 30% or more, it can then introduce restrictions on the prices of these products. In particular, the government will have the right to determine, for a period of up to 90 days, a list of medicines and medical devices for which it can set manufacturers’ maximum selling prices and maximum wholesale and retail mark-ups. Maximum prices set by the government will apply to manufacturers, distributors and pharmacies. It is important to note that this right is granted to the government for any medicine and medical device without exception. In addition, the Russian State Duma is considering a bill* to increase penalties and sanctions for any company violating these rules.