Dutchman bypasses sanctions to import Nike and Lego to Russia through grey-market methods.

From Investing.com: 2024-06-15 06:02:03

Despite Nike halting sales in Russia, an online sports retailer, footballstore.ru, is still offering Nike products to Russian consumers. Wijnand Herinckx, a Dutch citizen, facilitates imports of Western goods to Russia through intermediaries. Grey-market methods are used to meet demand for foreign products despite Western sanctions on Russian economy. Demand for Nike products in Russia is rebounding, reaching at least $74 million in 2023.

Herinckx’s successful operation involves the importation of popular Western brands, such as Nike and Lego, to Russia. By using intermediaries and shipping goods through Turkey, Herinckx provides Russian consumers with foreign goods no longer officially sold in Russia. Despite restrictions, demand for Western goods in Russia remains strong, fueling an underground economy.

Following the invasion of Ukraine, Nike and Lego stopped sales in Russia, leaving a gap that grey-market operators like Herinckx’s firm are filling. Russian businesses are authorized to engage in parallel imports without trademark owner’s permission, leading to billions of dollars in imported goods. Western brands face legal challenges enforcing intellectual property rights in Russia as they struggle to stop unauthorized distribution.

Herinckx’s thriving business forecasts revenues of $37 million in 2024, with substantial growth from $23.7 million in 2023. His company, HTS Rus, imports products like Reebok shoes and Armani watches to Russia without authorization. Herinckx used to work for Hellmann Worldwide Logistics before pivoting to grey-market importation; his firm benefits Russian consumers and prominent retailers alike.

By finding loopholes in Western brands’ sales policies, Herinckx imports Lego products to Russia despite the Danish firm’s halt of sales to the country. Using intermediaries and transit through Europe, Herinckx facilitates the transport of Lego bricks to Russia, supplying them to 48 retailers. Lego, once informed, acted swiftly to address false claims of collaboration with Herinckx’s firm, highlighting the challenges faced by brands trying to enforce restrictions.



Read more at Investing.com: The Dutchman who gets Nike and Lego into wartime Russia’s stores By Reuters