Russian regulatory bodies are reducing the flow of parallel imports into the Russian Federation. Previously, the Ministry of Industry and Trade permitted businesses to import entire categories of goods, such as clothing, fragrances, or cosmetics. However, future regulations will only authorize importing a limited range of brands. The ministry has confirmed this, stating that the relevant document is currently undergoing registration with the Ministry of Justice. The development of domestic production has been cited by the ministry as a key rationale for the reduction of the permitted import list.
“Parallel import is a flexible instrument developed to ensure stable provision of the entire range of essential products to the Russian economy amidst turbulence in external markets,” the ministry commented. “As domestic production of previously lacking items develops and supplies from friendly nations increase, along with other evolving factors, the list of products is being curtailed.”
Experts note that the narrowing of parallel import channels reflects the authorities’ aspiration to reorient the economy towards domestic production but may lead to contradictory outcomes. On the one hand, restricting the inflow of foreign goods does create an artificial niche for Russian manufacturers, particularly in sectors like perfumery and apparel, where dependence on Western brands has historically been significant. However, a sharp reduction in product variety without adequate substitution by domestic equivalents risks causing shortages or price inflation in certain product categories, which would negatively impact consumers. Furthermore, parallel import has become a crucial tool for businesses to adapt to sanctions, and its curtailment may intensify pressure on small and medium-sized businesses that may not always be able to restructure rapidly.
“It is highly probable that the list of brands accessible to Russians will soon significantly decrease,” notes Sergei Khestanov, economist and Associate Professor at the Russian Academy of National Economy and Public Administration (RANEPA). “It will be interesting to observe whether second-hand shops and informal traders, similar to those in the USSR, will re-emerge.”