Parallel Import Ban to be Lifted in EEU States?

The Eurasian Economic Commission (EEC) is considering the possibility of authorizing parallel import in the Eurasian Economic Union (EEU), EEC Antimonopoly Regulation Department Deputy Director Alexander Kurilchik stated during an online conference hosted by the Belarusian News website on February 16.

Parallel import is currently prohibited in the Customs Union and the Eurasian economic space, which has led to the monopolization of the markets by the authorized distributors of foreign brands who have imposed unrealistically high prices on some of the imported products, Kurilchik noted.

“The Eurasian Economic Commission has compared prices for services and spare parts available from authorized dealers and independent suppliers in the EEU. It turns out that, for instance, in Belarus prices for the brake pads available from authorized dealers are 25-60 percent higher than prices for the same merchandise available from independent automobile service companies. In Kazakhstan the price difference is 25-40 percent, in Russia it is 31-71 percent,” Kurilchik explained.

If parallel import were authorized, it would allow for competition among sources of the same or similar goods and thus reduce the prices of imported goods, he explained.

Prepared by: Aleksandra Pavlovic

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Source: Belarusian News website