Russian citizens can receive a “gift” from the Ministry of Industry and Trade on the occasion of May Christmas. The Russian Information Service Izwestia learned that the ministry plans to limit parallel imports – goods imported without the consent of the owner of intellectual property rights, usually bypassing the official distribution channels – so that only a limited number of brands can reach the country.
The Kremlin will certainly justify consumers' protection against low quality foreign products. Soviet authorities gave the same justification in the absence of basic goods from abroad.
My first thought was that this is an attempt to encourage Western companies, which, despite friendly signals, abstain back to Russia. In fact, the brands that left the country at the beginning of the war are asked to return.
However, so far everything we know comes from Russian sources. Russian producers and their lobbyists loudly claim that Companies that withdrew from the country in 2022 should not be accepted again – let them pay and show repentance.
President Vladimir Putin ordered the government to determine until May 15 how foreign companies that left Russia can buy back their assets, many of which were sold. It seems that the national production lobby has gained an advantage. The document that Izwestia reached requires the creation of a list of “fugitives”, and the returners will have to buy back their assets in a way that takes into account the interests of the current owners. Undoubtedly, it will be very difficult – if at all – to satisfy the demands of all who at the beginning of the war acquired foreign assets cheaply or even for free.
Officials claim that these changes will be introduced in the interest of Russian producers and consumers. Domestic producers will not even have to produce products similar or better than foreign counterparts. All they have to do is report their ambitions and will be able to eliminate foreign competitors.
If you doubt it, look at the medicine market where importing has long been replacing. Patients complain that domestic counterparts are less effective and cause more side effects. However, this does not prevent pharmaceutical companies to be among the largest enterprises in Russia. Their business model is simple: just buy generic drugs from India and mark them with a Russian brand.
Anna Krivitskaya / Shutterstock
Supermarket in St. Petersburg, Russia, January 17, 2014 (illustrative photo)
Chewing gums from Polish peers
Just look back at the USSR to see how it will go. According to the then state media, the late Soviet Union also had everything! He produced radios, cassette magnetters and TVs himself and he was terribly proud of it. He even produced jeans and sneakers!
Of course, there were only one or two brands to choose from. But why bother the citizens with a problem of choice, especially since there was no big difference between two factories? Of course, people liked to argue about the superiority of suits from the Bolshevik factory compared to the factory named after Klara Zetkin [jednej z założycielek Komunistycznej Partii Niemiec]. However, most of them were satisfied with shopping in the underground workshops.
Only the elite had access to real brands through distributors (oh, what legends circulated about the fifth floor of Gum – Moscow Main Department Store, which is one of the most expensive shopping centers in Russia) or could bring them from foreign business trips. The most clever made acquaintances at the customs office and were lucky to import Italian jeans and German tape recorders. Soviet students also joined the campaign, who corresponded to “Friends from Socialist countries”. Polish peers were particularly popular: they often sent chewing gum in letters.
There is no and it will not be
So get ready: we will have to give up many imported products that today still go to Russia in one way or another. For example, iPhones will be able to be imported – for now – after scandals about Russian tablets and other devices. But without Nike sneakers you can live. When it comes to household appliances, such as refrigerators, it seems that the only company that has decided to return to Russia is Italian Ariston. In addition, Russian citizens reduced the expenses for Chinese and nominally domestic cars, counting in vain, counting foreign cars.
Will the limitation of parallel imports in this way help develop domestic production? I don't think so. Just Clothes, which tried to fill the gap left by Uniqlo, closes all its stores and leaves the market after three years. Although she did not have competitors on the Russian market, the company has collapsed, because even dominating the market, you need to have qualified employees and automated production lines to stay. The times when clothing factories in Japan, China, and even Vietnam and Bangladesh were full of employees earning hunger salaries, they go to the past because they are replaced by robots. Only a few people are needed to support goods and ensure efficient operation of automated production lines.
In Russia, you can't find people who would like to work 10 hours a day for such low salaries. When it comes to modern equipment, there is neither money nor possibilities (thanks to sanctions) nor the desire to buy it.
Continuation of the material under the video
Everything will be more expensive
However, there is one key difference compared to Soviet times. This time it will be difficult to settle for shoes from the Skorochod factory, because domestic production will consist of parts bought in China and mounted in Russia. If you don't believe me, look at the Moskwicz car factory [które są produkowane na bazie chińskiej technologii i montowane w Rosji]. Many companies will not even bother with such effort. A quarter of domestic footwear manufacturers is limited to sticking soles to ready sneakers. In this way they do not spoil the original product, although the sole will finally fall off. They don't buy them in China because of their quality. They just try to reduce costs.
Second, this time You will not have to look for speculators from the black market in public toilets. Instead, new services will appear that will provide goods with one click on the screen. Many of these channels already exist in social networks and on internet platforms. They will have everything under control: customs, tax offices and law enforcement agencies. What's more, larger and more powerful companies will probably even get release from the list of the Ministry of Industry and Trade.
As a result Everything will become more expensive. The choice will be limited by the taste and ideas of new importers about beauty. But this is a small price for the support of domestic production, right?
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
