Key Highlights:
- Russia will allow the retailers to import products from international borders without the trademark and owner’s permission.
- Parallel Imports decision is supported by both, Federal Anti-Monopoly Service (FAS) and Russia’s top online retailer Wildberries.
- FAS commented that it has prepared a draft regulation on parallel imports.
Russia will be considering allowing the retailers to import products from international borders without the trademark and owner’s permission. The following was confirmed by the competition regulator after the international brands declared they would halt their services and export goods in Russia due to the invasion of Ukraine.
This news also confirms that Russia’s retail sector has been overturned by the foreign brands’ decisions and Western economic sanctions. Big brands like H&M and Nike have restricted their activity in Russia, causing the country to seek “parallel imports”.
FAS on Russia’s decision
Russia’s top online retailer Wildberries, the director met the head of the Federal Anti-Monopoly Service (FAS), to discuss the legalizing of parallel imports. Both sides were assured that this move will bring a positive impact on the consumers and Russian businesses.
FAS commented that it has prepared a draft regulation on parallel imports, also known as ‘grey imports, which are being discussed by the Russian Government.
Comments by the official on “parallel imports”
The general director of Wildberries, Tatyana Bakalchuk commented, “The FAS initiative allowing parallel imports will be an effective support measure. Small and medium-sized businesses will be allowed to legally import foreign goods without seeking additional permissions, and the consumer will get access to a wider assortment of goods of high quality for reasonable prices.”
Bakalchuk believes that this decision is important for the social-significant goods like medicines, foodstuffs, and children’s products.
After Russia invaded Ukraine, the country had to face backlash from international borders. In an attempt to condemn the act, international brands from around the globe ceased their operations on the border of Russia causing economic instability. Since then, the Soviet Government has been working on support measures to try and support its economy in the face of Western sanctions over the Ukraine conflict. Russia might face one of the most severe economic crises since the fall of the Soviet Union in 1991.
