Products of Western brands continue to arrive in Russia, bypassing the sanctions imposed by Western countries.
Points of attention
- Products of Western brands continue to arrive in Russia through intermediary companies, bypassing sanctions imposed by Western countries.
- The use of the 'gray market' by dozens of firms undermines the effectiveness of sanctions while satisfying the intense demand for Western goods in Russia.
- Russian legislation makes it challenging for Western companies to address this issue in court, allowing the deliveries to continue through intermediaries.
- Despite the ban on the sale of Nike and Lego, their products are still available in Russia, contributing to the profits of intermediary companies like Herinckx.
- Herinckx, a key player in importing Western goods to Russia, predicts revenue growth in 2024, maintaining ties with major Russian supermarket chains and online stores.
How are branded products of Western manufacturers delivered to Russia
According to the journalists of the publication, goods of such brands as Nike and Lego still arrive in Russia.
Products are imported with the help of intermediary companies.
In particular, the journalists of the publication refer to information from customs, corporate records and internal documents of one of these companies.
Yes, we are talking about a company created by a 40-year-old citizen of the Netherlands living in Moscow, Weinand Herinks, who built a profitable business on the supply of Western goods to Russia.
Herinksa's company also uses intermediaries for the purchase of branded goods, after which the products are sent to retailers, mainly through Turkey.
Advertisements for the sale of Nike branded goods are published on Russian websites, despite the fact that the company stopped selling its own goods in Russia after the start of the Kremlin's criminal war against Ukraine.
At the same time, representatives of the Nike and Lego companies told the journalists of the publication that they did not give Herinks company permission to supply their goods to Russia.
How many companies help import Western goods to Russia
According to the conclusions of the analyzed data, the authors of the material came to the conclusion that there are currently dozens of similar firms that use the so-called "gray market" for the supply of Western branded goods to Russia.
The authors of the material draw attention to the fact that the intense demand and the desire to satisfy it undermine the effectiveness of the sanctions imposed by the West against Russia.
However, such companies help the Russian economy.
With reference to the analyzed customs data, the journalists emphasize that, for example, the value of Nike products imported into Russia fell by 81% in 2022 to $21 million, but recovered in 2023 to at least $74 million.
According to a number of lawyers, Russian legislation makes it almost impossible for Western companies to resolve this issue through court.
Herinckx, a Russian company, has 82 employees and forecasts revenue in 2024 of 35 million euros, or about $37 million.
Last year, it was $23.7 million, according to the company.
Herinks' firm does not publicly disclose its clients.
But Reuters identified some of its Russian clients after reviewing documents the company filed with Russian tax authorities.
Among the clients are some of the largest Russian supermarket chains and online stores.
