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Russia publishes list of ‘parallel imports’ goods -Breaking

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© Reuters. The Vaga Maersk container vessel is moored at the port of Saint Petersburg in Russia, April 18th 2022. REUTERS/REUTERSPHOTOGRAPHER

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(Reuters.) – Russia released a comprehensive list Friday of products from foreign technology companies, carmakers and consumer brands that it included in a “parallel imports” scheme. The aim is to shield consumers against Western isolation.

Numerous global brands stopped selling Russia after Moscow sent tens to thousands of troops to Ukraine on February 24, and unprecedented Western sanctions restricted access to already stretched global supply chains.

In March, the government announced that it would permit “parallel imports”.

According to a Russian source, the mechanism allows Russian companies to purchase goods from other countries, even from those that have previously purchased the goods legaly.

On Friday, the government published a list that includes products from major foreign automakers and technology companies like Apple (NASDAQ) and Cisco (NASDAQ). It also contains a lengthy list of fashion brands.

It listed the trademark owners to whom certain copyright provisions were no longer applicable. This list included everything from automobile parts and building materials to cosmetics and electrical equipment, and textiles.

The trade ministry stated in a statement that parallel import doesn’t allow Russia to circulate fake goods.

According to it, “Under the sanctions regime that was imposed by unfriendly countries, one of the principal principles in compiling this list was to protect the interests domestic consumers of products exported from Russia.”

Parallel imports shouldn’t be equated to grey imports. Customs services will not be paid, and the shipments from Russia will be legal, stated Dmitry Polevoy. He is head of investment at LockoInvest asset Management and was previously chief economist at Russia’s state-run Direct Investment Fund.

Polevoy said that import volumes will be less than they were before the sanctions. However, Polevoy added that producers might impose additional restrictions in compliance with sanctions. These extra costs could push up prices.

“The real question is whether producers will close their eyes to Russia’s fact that they will sell their product.”

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