Patrushev: parallel imports hinder domestic developments

The parallel import mechanism introduced in 2022 helped stabilize the situation on the Russian goods market, but its continued use needs to be justified, since it impedes the increase in innovation activity. This was stated by Secretary of the Russian Security Council Nikolai Patrushev at an offsite meeting in Tomsk.

“The lack of justification for the continued use of the parallel import mechanism, which has largely fulfilled its role in stabilizing the situation on the goods market,” does not contribute to increasing innovation activity in the real sector of the economy,” leads his words to RIA Novosti.

Speaking about the situation in Siberia, Patrushev called the growth in investment and innovation activity of companies insignificant, in particular in the markets of knowledge-intensive and technological products, and also stated the absence of an economically justified balance between domestic consumption, export and import of manufactured goods. According to him, business continues to give preference to purchasing finished products from abroad rather than engaging in promising developments based on the scientific and technical potential available in the Russian Federation.

Parallel imports involve the importation of original goods into the country without the permission of the copyright holder or manufacturer. In the Russian Federation, this measure began to take effect on March 29, 2022 in response to Western sanctions. In September, the mechanism was extended until 2023. The list of products for import under parallel import includes goods from electronics manufacturers (Apple, SamsungIntel, Asus, etc.), cars (Porsche, Jaguar, Rolls-Royce, etc.), rare earth metals, sports equipment, etc.

By the end of 2022, the volume of parallel imports exceeded $20 billion, said Vladimir Bulavin, head of the Federal Customs Service. According to him, a total of 2.4 million tons of goods were imported, mainly cars, machinery and equipment.