Rewrite of Russian illegal trade and counterfeit risk assessment

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A recent pause on corporate inspections in Russia has raised concerns about a potential uptick in illegal commerce across industrial goods. This assessment comes from the international anti-counterfeiting community and the Center for Advanced Technology Development (CRPT), who jointly reviewed developments and trends reported by major news outlets such as Izvestia.

Experts affiliated with these organizations note a growing occurrence of so-called ghost enterprises in the country. These are firms that list addresses in their filings but do not operate at those locations, prompting questions about oversight and product provenance. The concern extends beyond misaligned addresses, touching the core issue of product quality and safety, as many items from these networks fail to meet established standards.

CRPT data indicate a pronounced pattern of violations across several key sectors. In the perfume industry, violations were tallied in the low millions during the first eleven months of a recent year, signaling systemic challenges in labeling, authenticity, or distribution. In the dairy sector, violations reached several hundred million, with millions specifically tied to attempts to market unauthorized products. The numbers underscore the breadth of the problem and the persistent pressure on regulators to tighten controls and improve traceability across supply chains.

Further complicating the landscape, the National Center for Scientific Competence has highlighted a notable share of illicit tobacco in the market. figures from the period in question point to double-digit percentages, and industry observers such as Igor Cherkassky, who heads the anti-illegal trade division at BAT Russia, have cited the large-scale seizures of counterfeit cigarettes as evidence of ongoing enforcement gaps and the need for strengthened cooperation among authorities, manufacturers, and retailers.

Individual consumer outlets and popular channels have also shown alarming signs of counterfeit penetration. A widely followed social media outlet reported a sharp increase in counterfeit confectionery items in retail venues, including high-demand brands like Raffaello. In these cases, the share of counterfeit products appeared to rival or exceed legitimate stock in certain locations, highlighting the urgency for robust verification processes at multiple points of sale and more transparent product tracing to protect shoppers and legitimate brands alike.

These developments collectively suggest that while regulatory actions and enforcement programs remain in place, market actors must stay vigilant. The pattern of ghost enterprises, combined with the ongoing circulation of unauthorized goods, emphasizes the need for enhanced due diligence, stronger enforcement of labeling and packaging standards, and improved data-sharing among authorities, producers, and distributors. Stakeholders are urged to invest in identity verification technologies, supply-chain mapping, and consumer education to reduce the risk that deceptive products reach end users. The conversation continues to focus on balancing rapid market access with rigorous safeguards that deter illicit trade and protect public health, legitimate commerce, and brand integrity. [Citations: Izvestia report; anti-counterfeiting association; Center for Advanced Technology Development; BAT Russia commentary; industry observers and market feeds]

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