“Advantages of parallel import include lower prices and development of non-price competition,” said Tatiana Radchenko, Deputy Head of the Analytical Center, to Vedomosti journalist. However, in her opinion, there are risks of reducing incentives to invest in brand development, and growth of the shadow sector.
Advantages of parallel import include lower prices and competition development
The Analytical Center estimates that in 2014-2015, products for some USD 64 billion were imported to Russia under protected brands, and protected brand products for just USD 3.2 billion were exported in the same period, states the periodical.
Currently, the Civil Code prohibits parallel import; it is only the right holder or the official dealer that can import goods to Russia. Change in this principle has long been proposed by the Federal Antimonopoly Service (FAS), and in February 2018, the Constitutional Court allowed the import of goods without the permission of the brand owner inflating prices.
Prime Minister Dmitry Medvedev commissioned preparation of proposals on the legalization of parallel imports in late August. FAS had to do this by October 10. The bill has been prepared and submitted to the Ministry of Economic Development and Trade.