Bloomberg: Russia smuggling elite alcohol into country

International spirits brands that halted supplies of premium liquor to Russia have lost control over whether their stock is sold there, thanks to a government scheme allowing drinks imports without the trademark owners’ consent, Report informs referring to Bloomberg.

Products like Diageo Plc’s Johnnie Walker whisky and Remy Cointreau SA’s Remy Martin cognac are widely available in Russia, even though the distillers stopped exporting to the country after its full-scale invasion of Ukraine.

Remy says its spirits being sold in Russian stores could be residual inventory left over from when it pulled out, or it could be the result of “parallel imports,” products brought into the nation from countries and entities not following sanctions against Russia.

“We do not know, as we have not sold one single product in Russia since January 2022,” a Paris-based Remy Cointreau spokesperson said when asked about the origin of its products being sold there. “We have no visibility.”

It’s a tacit admission that owing to the large number of middlemen involved in selling a product internationally, it’s difficult for companies to keep track of all their stock. Manufacturers in other industries — such as beauty or personal electronics — which have stopped exporting to Russia are likely to be in a similar position. The country has expanded brands and products for which it allows parallel imports to include IKEA furniture, Lancome cosmetics and Hasbro Inc. toys, among others.