Russian consumers continue to have access to popular Western brands such as Nike and Lego through the efforts of Dutch businessman Wijnand Herinckx. Despite these brands exiting Russia in 2022 due to the war in Ukraine, Herinckx has been able to import and distribute their products in Russia using grey-market methods. He purchases the products through intermediaries with no apparent connection to Russia, ships them often via Turkey, and then delivers them to retailers. This has allowed Russian consumers to still have access to these products, despite attempts by Western countries to isolate them through sanctions.
Herinckx’s business has reportedly been thriving, with projections of 35 million euros in revenue for this year, up from $23.7 million in 2023. While companies like Nike and Lego have not authorized Herinckx’s imports to Russia, there is no evidence of sanctions violations in his activities. His business, along with others employing similar grey-market tactics, indirectly contributes to the Russian economy by providing consumers with foreign goods they have become accustomed to since the end of communism. This is significant as over 1,000 foreign companies have pulled out of or reduced operations in Russia since the invasion of Ukraine.
Following the mass exodus of foreign businesses from Russia in response to the invasion of Ukraine, the Russian government allowed firms to import products from abroad without the trademark owner’s permission. This policy has resulted in what Russia claims to be over $70 billion in parallel imports in the two years leading up to the end of 2023. Herinckx’s business is one of many that have capitalized on this opportunity, ensuring that Russian consumers can still access Western brands that have left the country. While some Western companies have tried to cut off access to their products in Russia, businesses like Herinckx’s have found ways to circumvent these restrictions.
The grey-market imports facilitated by businesses like Herinckx’s highlight the challenges faced by Western countries in trying to isolate Russian consumers through economic sanctions. Despite efforts to restrict access to popular brands like Apple and Zara, Russian consumers have found ways to continue purchasing these products through parallel imports. Herinckx has managed to build a successful business by providing Russian consumers with access to Western brands, even after they have officially left the country. This not only benefits the consumers but also indirectly contributes to the Russian economy by providing a steady flow of foreign goods.
The situation with grey-market imports of Western brands into Russia reflects the complexities of international trade and the impact of geopolitical events on global business operations. By using intermediaries and alternative routes for importing products, businesses like Herinckx’s have been able to bypass restrictions imposed by trademark owners and continue serving Russian consumers. While Western companies may not have authorized these imports, they are still being purchased and consumed in Russia, illustrating the challenges of enforcing restrictions in a globalized economy. As the conflict between Russia and Ukraine continues, the dynamics of international trade and business operations will likely continue to evolve in response to changing geopolitical conditions.
