No problem with cosmetics (revised)

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“No problem with cosmetics”

The discussion centered on whether a clear timetable for naming specifics could be provided, with Manturov suggesting that details might emerge in roughly a month as Russia receives the first goods moved under parallel import arrangements. Reporters were informed that the move toward legalizing parallel imports was designed to avoid disruptions in supply chains and to prevent a surge in second-hand retail activity.

The official stressed that the measure was only provisional and aimed at a temporary window through the end of 2022. He noted that observations in the following two months would reveal how the policy functions in practice and whether the approach proves effective. The decision to legalize parallel imports was framed around current business demand and the need to keep production running when firms rely on specific components or imported products. Although consumer care items and basic textiles were not initially prioritized, the policy still provided room for action where it met real market needs.

Journalists pressed Manturov on whether discussions were underway to restore supply chains for cosmetics brands that might benefit from parallel import exemptions. He confirmed that such inclusions were under consideration, and he pointed to the example of L’Oréal in Kaluga, which had yet to finalize a particular decision. He noted that the industry is approaching these steps with care and responsibility and that a recent industry gathering focused on cosmetics showed strong participation from Russian firms and developers.

According to Manturov, the aim was to ensure that cosmetic products used by women, men, and children—covering makeup, skincare, and fragrances—would remain accessible within Russia. This commitment followed a broader period when many foreign brands paused operations or withdrew in response to sanctions and the evolving economic environment after the military actions in Ukraine.

In March, a government resolution simplified the process for importing original foreign goods without consent from copyright holders, effectively reducing the liability previously associated with parallel imports. By early May, the industry ministry approved a list of goods eligible for import without trademark authorizations, including a wide range of cosmetics brands. Names such as Garnier, L’Oréal Paris, and Maybelline appeared on the exceptions list, alongside a broader spectrum of well-known beauty labels. The list also encompassed several big-name skincare and makeup lines from prestige and mass-market segments, reflecting an effort to maintain product availability during a period of market volatility.

No refund option

Manturov also addressed the status of a Moscow manufacturing site once held by Renault. He described the transfer to the city authorities for a nominal payment as non-expropriation, emphasizing that the state was not seizing property without compensation. In his view, nationalization would involve a unilateral government takeover of private assets, whereas Renault agreed to this arrangement under agreed terms.

The minister noted that the Moskvich plant intends to maintain production and broaden its collaboration with international partners while simultaneously developing its own products. The strategy for the Moscow site envisions continued automotive activity, but with a refreshed lineup, including potential electric vehicle developments, developed in partnership with other firms such as Kamaz. The government has also discussed opportunities for cooperation with several Chinese automakers to integrate Russian car-building capabilities with global supply chains.

As for leadership, Manturov indicated that the final appointment for the AvtoVAZ director had not been confirmed. He referenced a former deputy minister who had overseen the automotive sector for several years but had not taken the post in the current process. He hinted at further movement within the industry, suggesting opportunities for leadership roles in related enterprises.

Recent agreements involving the transfer of Russian assets to Renault were noted, with the company’s stake in AvtoVAZ shifted to the state-owned FSUE NAMI and the Renault Russia plant in Moscow transitioning to new oversight. The described moves align with a broader effort to reconfigure ownership and governance in key industrial segments as part of ongoing structural adjustments within the Russian economy.

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