The Ministry of Industry and Trade is planning to restrict parallel imports in favor of Russian goods, according to media reports citing documents from the ministry and sources within the agency. Previously, the Russian government allowed companies to import entire categories of goods such as clothing, perfume, or cosmetics, but now only a limited number of brands will be allowed, reported among others the newspaper Izvestia. The agency confirmed this information to the newspaper and explained that the relevant document is already being registered at the Ministry of Justice. Izvestia writes: “The Ministry of Industry and Trade is preparing to update its regulation on parallel imports, which allows foreign goods to be imported into Russia without the permission of the rights holder. Previously, the ministry would almost quarterly change the brands in the document and review the situation with the sale of foreign goods. However, this spring, the agency plans to reduce the amount of goods that can be imported through parallel channels, according to a source familiar with the document’s drafting. The ministry will fundamentally change its concept.” Instead of the entire product category, only a limited list of brands will be allowed for parallel imports. “As domestic production of the desired items develops, supplies from friendly countries and other factors increase, the list of goods will be adjusted in the direction of reduction” the agency explained to the newspaper. Artjom Sokolov, President of the Association of Online Retailers, commented on the situation to the newspaper and explained that each brand on the list of parallel imports will now be subject to public scrutiny. Factors such as the availability of local production, consumer demand for the goods and the availability of equivalent alternatives among domestic brands will be considered. Sokolov said: “We are in a continuous constructive dialogue with the ministry and believe that it is important to maintain the conditions under which Russians can buy familiar brands and the market offers a wide range of goods.” Experts say that the situation in many sectors has eased in recent years and a large part of the brands that disappeared from the Russian market has been replaced by similar domestic offerings. Therefore, it is understandable that parallel imports are now only allowed for goods that are essential for consumers and which the domestic industry cannot replace or produce in sufficient quantities.
A Boost for Domestic Industry?
