Unauthorized Imports from the West Will Be Allowed into Russia
Following the imposition of a number of sanctions on Russia by various countries all over the world, Russia has decided to allow imports of goods without the approval of the trademark owner. Come read our blog to learn more.
Russia has announced that it will be allowing imports of goods without the trademark owner's permission. The decision comes after numerous sanctions have been placed by countries around the world on Russia, following the country’s invasion of Ukraine. National inflation and the increasing unavailability of products are motivators of Russia’s decision to allow for the import of products without the company's permission.
What Sanctions Have Been Placed on Russia?
Since the war began, countries and companies have been standing in solidarity with Ukraine by sanctioning Russia, refusing to conduct business with the country and refusing to be associated with it. To date, more than 1,000 international companies have made the decision to stop trading with Russia or suspend trade. McDonalds, Coca-Cola, and Starbucks have halted business operations in Russia, while Heineken has stopped beer production and sales in the country. H&M Group, Apple, and Nike have all temporarily halted sales in their Russian stores.
The assets of Russia’s central bank have also been frozen, meaning that it cannot use the $630 billion it has in foreign currency reserves. The US has banned oil and gas imports from Russia, while other countries, such as the UK, have made plans to phase out imports as well.
As a result of the war and the sanctions imposed on Russia, the ruble has fallen in value by 22%. This has elevated the price of imported goods and has led to a 14.5% rise in inflation.
Russia Fights Back on Sanctions
In response to the sanctions imposed on Russia, the country is now allowing imports of goods without the permission of the trademark owner. Previously, the only way to sell a branded item in Russia or anywhere else in the world was to obtain a license from the trademark owner. Trademarks are considered valuable property rights and are highly protected.
According to The Washington Post, this decision will allow businesses to “steal patents from anyone in ‘unfriendly’ countries.” The impact of losing patent protections in Russia will likely be different for each company.
Before the announcement from Russia, the US government had raised concerns about intellectual property rights violations in the country. In 2021, Russia was placed on a list of nine nations that the US considered to be a priority in terms of investigations into failures to protect intellectual property.
The Russian ministry defended its decision, saying that it would “mitigate the impact on the market of supply chain breaks, as well as shortages of goods and services that have arisen due to the new sanctions of western countries.”
The full impact of unauthorized imports on the companies affected is unknown, and it is unclear whether more sanctions will be imposed on Russia any time soon.
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