Russian manufacturers began to introduce quotas for the sale of building materials

Amid difficulties with the import of building materials, Russian manufacturers’ workload has increased. Some of them, in particular TechnoNIKOL, are even forced to introduce quotas for product sales. In the moment, such a decision may cause a negative reaction from the market, but it is necessary to prevent speculation on the shortage of building materials, experts say.

Some Russian manufacturers of building materials have introduced quotas for the sale of their products to distributors and developers, developers told Kommersant. “We encountered restrictions when purchasing a number of thermal and waterproofing materials,” confirms Elena Mironova, director of the estimated pricing department of the Granel Group of Companies. Two Kommersant sources in the market say that the quotas were introduced by one of the large manufacturers of insulating materials, TechnoNIKOL.

Vasily Tkachev, head of the Mineral Insulation direction at Technonikoli, confirmed that since February the company began to determine guaranteed volumes of supplies of stone wool insulation for industrial, civil and low-rise construction. Mr. Tkachev explains this decision with “the desire to provide for all the company’s clients.” He claims that TechnoNIKOL plants are operating at full capacity, producing 15 million cubic meters each. m of production per year.

The practice of introducing quotas by manufacturers has existed before, but now, due to the restructuring of logistics and import substitution, it is more common, says Elena Mironova. According to her, production does not keep up with the demand of the domestic market, especially taking into account construction in new regions. The volume of new housing commissioned in 2023 broke a historical record – 110.44 million square meters. m throughout Russia, as calculated by Rosstat. The volume of construction work as a whole last year increased in comparable prices (taking into account inflation) by 7.9%, to 15.1 trillion rubles.

Production volumes of building materials are also growing. According to Rosstat, in 2023, marble production throughout the country increased by 18% year-on-year, to 13.9 million tons, crushed stone – by 8%, to 222 million tons, clay – by 4%, to 21.6 million tons , cement – by 3%, to 61.2 million tons, panels and reinforced concrete coatings – by 4%, to 6.2 million cubic meters. m, silicate blocks – by 4%, up to 5 billion standard bricks. Production of construction sand increased by 3%, to 199 million cubic meters. m, linoleum – by 10%, to 143 million sq. m, sheet glass – by 28% to 15.7 million sq. m.

Many developers, in order to avoid interruptions in the supply of building materials, either buy and store them in their warehouses or directly at construction sites, or discuss the date of purchase and delivery in advance – from two to four months, says Stanislav Sagiryan, general director of RKS Development Group of Companies.

Manufacturers on a large scale are unlikely to limit sales; rather, this happens in regions where there is little competition among enterprises of a particular material, says the General Director of Smart Engineers Group of Companies, Hussein Pliev. At the moment, the shortage has a negative impact on prices and, accordingly, on construction companies, but the introduction of quotas in general is rather a forced and correct decision that will not allow speculation to arise, he believes.

The Ministry of Industry and Trade and the Federal Antimonopoly Service (FAS) told Kommersant that they had not received information about the introduction of quotas by manufacturers of building materials. The Ministry of Construction did not respond to Kommersant’s request.

The introduction of internal quotas is not a violation of antimonopoly legislation if a preferential position is not created for individual market participants, notes Vladimir Khantimirov, managing partner of the Asterisk law office.

However, in 2010, the FAS established the dominant position of Tekhnonikol-Stroitelnye Sistemy LLC in the wholesale market of rolled roofing and insulating materials, clarifies Oksana Pavlukhina, advisor to the antimonopoly practice of the MEF Legal. If the company’s actions are found to violate antitrust laws, then, the expert warns, it may face a fine of up to 15% of revenue.

Daria Andrianova, Vladimir Komarov