Ban on parallel imports: Home appliance manufacturers have started blocking supplies to Russia

World leaders in the production of household appliances, such as Electrolux, Tefal, Braun and Rowenta, have started to apply a ban on parallel imports of their products to Russia, the aggressor country. They are signing moratoriums with partners in other countries to block the re-export of goods to the Russian market.

According to information published by the Russian newspaper Kommersant, Dmitry Levin, director of the Large Household Appliances department at Marvel Distribution, claims that violation of the moratorium leads to the termination of contracts and stoppage of supplies. Some manufacturers are even trying to ban the placement of their goods on Russian online platforms.

According to the practice recorded in the contracts of Western companies, a ban on resale of goods to Russia has already been noticed in 2022 and 2023. "Some brands are even taking measures to check and punish partners who have violated these conditions," adds Vladislav Borodin, Director of Consumer Electronics at OCS Distribution.

Following this, M.Video-Eldorado Group CEO Sergey Lee reports that due to restrictions on parallel imports, Swedish company Electrolux products are already "present in limited quantities" on store shelves. Another source notes that their chain has not sold Electrolux products since February 2022.

"In today's environment, it is unprofitable to supply imported products in parallel, as the price is more expensive and the wages are insufficient," the retailer explains.

As for the stores' reaction to these changes, it is expected that brands that block their supplies due to "parallel imports" will disappear from the shelves. Nevertheless, M.Video-Eldorado claims that the range of goods in its stores has increased by 22% compared to the previous year, with the main suppliers being brands from Turkey, China and the UAE.