Price controls in Chechen markets have come into conflict with Russian law.

The law does not provide for state regulation of food prices, with the exception of a limited list of socially important products, and the Chechen prosecutor's office found no violations during raids on markets and stores. Sellers set prices for all other goods at their own discretion.

As "Caucasian Knot" reported, prices are rising in both markets and stores before the month of Ramadan, social media users pointed out in early February, and food prices published by the official Chechen newspaper do not reflect reality. Chechen authorities' reports on food price controls have had virtually no impact on the situation in stores and markets. Low-income residents of Grozny, including pensioners and teachers, reported that, amid rising prices, they are struggling to find money for groceries at the beginning of Ramadan. Among the most expensive products are meat, dairy products, and fruit, and shoppers say prices will rise even further just before Eid al-Fitr. Economists emphasized that such a large price increase is not related to the VAT increase. The Chechen Prosecutor's Office, following on-site inspections ordered by Kadyrov, found no cases of price gouging on food products and essential goods. The prosecutor's office's findings are expected, since price regulation as such is not provided for by law, lawyer Timofey Shirokov told the "Caucasian Knot." "There is freedom of economic activity and freedom of pricing. Therefore, all regulatory actions can be advisory in nature, especially at the regional level," he said. This is precisely why, according to the lawyer, no violations were identified. At the same time, the agency reported "increased demand for certain types of food products" and issued "warnings regarding the inadmissibility of violating the law" in connection with this, specifically "regarding liability for creating a cartel and engaging in concerted actions to set or maintain prices."

"A trader has the right to set prices as they see fit. There is an antitrust procedure, which may include complaints raised, including those related to pricing, but this procedure is not about that and is not carried out as part of some market raid. Naturally, this is completely inappropriate here," Shirokov explained.

According to him, from a formal standpoint, verbal warnings have no legal effect. "But we understand perfectly well that there are other measures of influence besides legal ones," he concluded.

Economist Kamaludin Mikailov also pointed out that Russian laws do not provide for state regulation of food prices, and sellers determine their own prices based on market demand and supply.

"In special cases, the FAS handles such issues, but in this situation, it's the responsibility of the entrepreneurs themselves, who want to maximize their profits. In a market economy, it's impossible to control prices at bazaars and markets, since each seller has their own costs and risks," Mikailov told a "Caucasian Knot" correspondent.

He noted that the list of socially significant goods whose prices the state can influence includes only a limited set of products. "These include bread and bakery products, pasteurized drinking milk, butter, meat and fish—beef, pork, lamb (except boneless), chicken, and frozen whole fish. Grocery items include wheat flour, granulated sugar, table salt, black tea, rice, millet, buckwheat, and vermicelli. Vegetables and fruits include potatoes, cabbage, onions, carrots, and apples. However, price changes for goods not included in the list can only be controlled through competition between suppliers," the economist emphasized.

Seasonal factors, including increased demand before Muslim holidays, are a natural phenomenon, says Mikhail Chernyshov, PhD in Economics, leading researcher, and head of the Laboratory of Spatial Development Problems at the Institute of Market Problems of the Russian Academy of Sciences.

"The Caucasus republics are a small piece of the puzzle. Across Russia, for example, before Easter, New Year, Christmas, or even March 8th, there's a noticeable price increase for goods in demand at those times. Typically, they'll drop after the holidays. But this year, it's worth keeping in mind that VAT has increased, and rents are also rising," he said.

The antimonopoly service is responsible for regulating prices for socially important goods—it "intervenes if prices change abruptly," the economist noted.

"They put pressure on sellers, but they manage to mark up goods that aren't on the list of socially significant ones. Let's say they mark up toilet paper by 50% and onions by 10%, and in the end, on average, they still have a profit margin, but that doesn't mean you spend less. It means you only spend less on the category the government is trying to regulate," Chernyshov explained.

Overall, inflation in Russia is rising, despite seasonal price fluctuations and declines. "It's difficult to say how much inflation corresponds to the central bank's statements. Annual inflation, for example, is 5%. How is it calculated? Let's say diamonds, or tours to Dubai, have become cheaper, while onions have risen, and the average combined figure is 5%. But we buy onions more often than diamonds, and we feel it's not 5%. There's also so-called consumer inflation, inflation for the people—it's higher; people feel it, start spending their reserves, and are now withdrawing money from deposits. The question arises as to how adequately pensions are indexed, how adequately public sector salaries are calculated, and to what extent are people's savings devalued. They don't correspond to the price increases we're seeing, and that's a major problem," Chernyshov concluded.

In 2025, authorities installed billboards at the Berkat market in Grozny with fixed prices for the month of Ramadan, recommending that Grozny residents call a hotline if these prices are exceeded. Nevertheless, food prices in Chechnya rose ahead of Eid al-Fitr. On March 17, 2025, Ramzan Kadyrov ordered intensified raids to confiscate food with unjustified markups from vendors and distribute it to those in need. Grozny City Hall subsequently reported on the raids on stores.

The head of Chechnya had previously threatened residents who shopped in other republics. Kadyrov's threats to confiscate food from vendors in 2025 came amid an existing practice: previously, food had been confiscated from customers who purchased goods outside the republic before Eid al-Fitr. Two Chechen residents reported that their cars were being searched at the border with Dagestan before Uraza in 2024 as part of a crackdown on violators of the "regulation on supporting local entrepreneurship," according to a "Caucasian Knot" article published on March 13, 2025.