Russia contemplates ‘parallel imports’ after top brands halt sales -Breaking
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© Reuters. FILE PHOTO – This illustration, taken on February 25, 2022, shows plastic letters that read “Sanctions”. REUTERS/Dado Ruvic/Illustration(Reuters] – Russia could allow foreign retailers to import their products without trademark owners’ permission. The announcement was made by the competition regulator on Friday. It comes after major brands stopped sales and exports in response to Russia’s invasion of Ukraine.
Allowing “parallel imports” reflects how Russia’s retail sector has been upended by Western economic sanctions and decisions by international firms like H&M and Nike (NYSE: ) in order to limit their activity Russia.
Federal Anti-Monopoly Service reported that the FAS’s head met with Wildberries, Russia’s largest online retailer. The discussion included legalizing parallel imports. Both the Russian and American businesses were both optimistic about this move.
FAS claimed it had created draft regulations regarding parallel imports. Sometimes called “grey” imports. These were currently being considered by the government.
The FAS initiative that allows parallel imports is an effective support measure. In a statement, Tatyana Bakalchuk (wildberries general director) stated that small and medium-sized enterprises will now be permitted to import legal foreign goods without the need for additional authorizations. The consumer will also have greater access to high-quality goods at affordable prices.
Bakalchuk stated that it is important to do this especially for goods with social significance, such as medicine and food.
Russia’s government proposed several support measures in order to help its economy withstand Western sanctions. The Kremlin is still facing its worst economic crisis since 1991, when the Soviet Union collapsed.
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