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Resolution No. 353: What Is Happening and What Are the Consequences for Russian Business

On March 12, 2022, the Government of the Russian Federation adopted Resolution No. 353, which marked an important step in simplifying the processes of parallel imports. The document allowed domestic importers to bring in goods that were previously available only through official channels, bypassing lengthy certification procedures. This innovation aimed to improve the availability of goods for Russian consumers amid a tense international environment.

The validity of Resolution No. 353 was set to expire on August 31, 2024, causing certain concerns within the business community. Many entrepreneurs raised alarms about the consequences of this expiration: potential increases in documentation costs, the need to revert to stricter and more time-consuming certification procedures, and other issues.

However, on August 31, 2024, an important development occurred. Amendments to Resolution No. 353 expanded the possibilities for parallel imports by extending the simplified procedure for two more years—until September 1, 2025. Let us examine the key changes and their implications for Russian businesses.

Extension of the Simplified Procedure for Confirming Compliance:
According to the updates, the continuation of the simplified compliance confirmation procedure applies to imported and produced goods that previously required mandatory certification. Entrepreneurs can now provide a declaration of conformity based on their own evidence. This means that after submitting the declaration, goods can enter the market, and compliance with established requirements must be confirmed within six months.

Import of Goods Without Mandatory Marking Until September 1, 2025:
It is also noteworthy that until September 1, 2025, the importation of goods into Russia is allowed without mandatory marking. However, the marking must be applied to the products before they are sold to the end consumers.

Until December 31, 2025, Rospatent will not publish information about rights holders and trademarks in its official bulletin
According to the changes, until December 31, 2025, Rospatent will not publish information about rights holders and trademarks in its official bulletin. This decision has significant implications for enterprises involved in innovations and trademarks. It will allow companies to maintain confidentiality, which is likely to foster increased interest in development and planned innovations.

Conclusion

In general, the extension of the simplified procedure for confirming compliance and the implementation of other changes under Resolution No. 353 create more favorable conditions for business in Russia. This will enable importers to operate effectively in uncertain conditions and quickly adapt to new challenges. The success of implementing these innovations will, of course, depend on the willingness of entrepreneurs to seize new opportunities, as well as their adherence to new rules and requirements.

The Russian business sector faces new challenges amid a decline in imports from China

According to data from the General Administration of Customs of China, the volume of exports from the country fell by 13% in April, totaling $8 billion.The main issue has been the refusal of local banks to accept payments from Russia, which has significantly impacted trade.

The situation is becoming increasingly complex each month. In February 2024, a noticeable decline in new contracts was observed, as leading Chinese banks, including the Bank of China, began to return a significant portion of yuan transfers from Russian legal entities. As a result, fulfilling even previously paid orders has become challenging.

Russian companies are attempting to circumvent these restrictions; however, the solutions they have found are either temporary or lead to significant increases in costs. The conclusion drawn from this situation is clear: the current payment mechanisms and cooperation with China require rethinking and adaptation to the changed conditions.

In response to this volatility in trade with China, Russia has intensified its interaction with other Asian countries. Under sanctions and with limited access to Western technologies, Russian businesses are forced to seek new markets for sourcing equipment and electronics. The Ministry of Economic Development of Russia reports a significant increase in trade turnover with several Southeast Asian countries. In 2024, trade with Singapore and Myanmar more than doubled, while trade with Cambodia rose by 15%, with Laos by 17%, and with Vietnam by 8%.

However, despite these positive changes, total imports from Asia in the first half of 2024 decreased by 4.8%, totaling $86.6 billion. This underscores the complexity of the current economic situation and the need for further strengthening ties with Asian partners to mitigate the consequences of reduced imports from China.

Thus, Russian businesses will need to adapt to new conditions by increasing their presence in alternative markets and optimizing the logistical and financial aspects of international trade. Developing new relationships and strengthening existing ties with Asian countries may be key to maintaining stability and growth amid global economic uncertainty.

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