Dutch Businessman Helps Russia Import Western Brands Like Nike, Lego – Reuters
How does Herinckx's business model work around the sanctions imposed on Russia due to the war in Ukraine?
Wijnand Herinckx, a Dutch businessman, has found a way to import Western brands like Nike and Lego into Russia despite the sanctions imposed on the country due to the war in Ukraine1. His business model works around the sanctions by using intermediaries with no apparent connection to Russia to purchase the products. He then ships the products to Russia, often via Turkey, and finally delivers them to retailers.
Herinckx's firm employs 82 people and forecasts revenues of 35 million euros ($37 million) this year, up from $23.7 million in 2023. It is important to note that Herinckx claims to deal in consumer goods that are not subject to sanctions on Russia. No evidence of sanctions violations in his activities has been found.
His business, along with others using similar grey-market tactics, indirectly helps the Russian economy by allowing consumers to continue purchasing foreign goods they have grown accustomed to since the collapse of communism.
What specific grey-market methods does Wijnand Herinckx use to import Western brands into Russia?
Wijnand Herinckx, a Dutch businessman, has established a thriving business by importing Western brands like Nike and Lego into Russia via grey-market methods. His specific approach involves purchasing these products using intermediaries with no apparent connection to Russia. He then ships the products to Russia, often via Turkey, before finally delivering them to retailers.
Herinckx's Russian firm employs 82 people and forecasts revenues of 35 million euros ($37 million) this year, up from $23.7 million in 2023. It's important to note that both Nike and Lego have stated they did not authorize Herinckx's imports of their products to Russia. However, Herinckx claims that he deals in consumer goods not subject to sanctions on Russia, and Reuters found no evidence of sanctions violations in his activities.
Herinckx's firm is just one of many businesses employing grey-market tactics to import goods to Russia from brands that left the country in response to the invasion of Ukraine. The Russian government allowed firms to import products from abroad without the trademark owner's permission amid the mass exodus of foreign businesses in 2022. These so-called parallel imports totaled more than $70 billion in the two years up to the end of 2023, according to Russia1.
Which Western brands has Herinckx successfully imported into Russia despite their exit from the market?
Herinckx has successfully imported Western brands such as Nike and Lego into Russia despite their exit from the market. He has managed to do this through grey-market methods, purchasing the products using intermediaries with no apparent connection to Russia and shipping them to Russia, often via Turkey. His business has been thriving, with projected revenues of 35 million euros ($37 million) this year, up from $23.7 million in 2023.