The Purported Trade Boycott - How Brands Maintain Their Presence in Russia and Profit Handsomely From It.

‘Many international brands continued to profit from sales to Russia after the invasion of Ukraine, despite sanctions and public announcements of market exits. Using e-commerce transaction data from over 1,700 online resellers in 46 countries and 95 brands, the article shows that while direct sales by brands declined, intermediaries often maintained or even increased their sales to Russia. Three key factors influenced this: geographic proximity to Russia, weak control by brand owners over resellers, and public pressure. Brands listed on public “exit lists” saw sharper sales declines, suggesting naming and shaming had an effect. In contrast, unlisted brands saw increased sales. The study highlights the role of intermediaries and parallel imports in bypassing sanctions. It raises questions about corporate responsibility, as brands may still benefit from Russian sales through indirect channels. The findings are based on research using data provided by Grips Intelligence and published in a CEPR working paper." '