Opinion: "Survival strategy under sanctions"

20.05.2022 - 15:46 #Russia, #Sanctions, #Import
Russia on May 6, 2022, legalized parallel imports

In an effort to "survive under the sanctions," Russia on May 6, 2022, legalized parallel imports. That decision affected mainly the brands of companies that have suspended operations in Russia.  According to the order of the Ministry of Industry and Trade, more than 50 categories of goods can now be imported without the consent of the copyright holders, including cell phones, computers, household appliances, clothing, shoes, perfumes, and automotive components.


There is no doubt "Gray imports" are unable to solve the problem of spare parts, as Chinese analogs are not always licensed or of high quality.
Besides it is proved that “Gray imports”, by definition, do not take root in high-tech industries, and neither does “import substitution.”


I am convinced that Russian consumers are accustomed to the quality goods of Western brands. That’s why the Russian government measures are directed to their replacement with Chinese equivalents which will cause a clear loss in quality and variety.


If this trend continues the Russian market will become a realm of counterfeit products in the nearest future. In addition, in the absence of official representative offices of manufacturing companies, it will be quite difficult to distinguish official products from fakes.


Day-by-day Russia is turning into a “gray zone” of counterfeiting and this is still a modest price to pay for aggression in Ukraine.


In my opinion, all attempts to introduce “gray imports” are ruining Russia’s reputational capital. The market is saturated with goods of dubious quality, and ultimately the consumer and Internet commerce undoubtedly will suffer because goods are vulnerable to counterfeiting.


Independent expert
A. Bokach

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