Parallel Imports and the Russian Economy in the Sanctions Era

Abstract

Imports and exports are fundamental to the economy: they permit the redistribution of resources for maximum profit, by the sale and purchase of specific materials and products. Recent events such as the special military operation, stiffening of sanctions, and the embargo on Russian oil and petroleum products—have stimulated interest in parallel (or gray) imports, which have begun to play a considerable role in Russia’s external economic policy and in the state’s overall economy. The present study analyzes the impact of parallel imports on the Russian economy, identifies the weak and strong points of the policy, and offers remedies appropriate to the current economic situation.