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WESTERN COMPANIES ARE ASKING TO RESUME OPERATIONS IN RUSSIA, BUT UNDER CERTAIN CONDITIONS

In one of our previous articles, we highlighted, that the re-entering to Russian market is not easy for the rights holders who has left since 2022.

Recently applications for registration of new trademarks have been filed with Rospatent by Hyundai for the production and sale of different kinds of automobiles and spare parts and Louis Vuitton for perfumes, cosmetics, watches, and jewelry.

According to Bloomberg, the Russian Finance Ministry is proposing strict rules regarding the return, such as:
· localization of the production process
· technology transfer
· return of assets only at market price, even if they were previously sold for a few cents
· evaluation of applications against Russian competitors

Our experts in strategic consulting emphasize, that such requirements can signify several important aspects. Firstly, it may be an attempt by the government to protect local producers and create more competitive conditions for domestic companies. Such measures are aimed to contribute to the development of the local economy and reduce dependence on foreign supplies.

Consequently, it is important for foreign companies not to delay the return as their niches will be occupied and it will be more complicated to restore the positions on the market. In new conditions it is crucial to make trademark registration for Rospatent and Customs register (TROIS) as the competitive environment has changed and it is necessary to ensure the protection in case the brand faces threats. For instance, opportunistic competitors may benefit from the expired trademark or challenge its registration, leading to costly legal battles.

Overall, the Russian government requirements prove the aim at greater autonomy and control over the economy, as well as a wish to create a more resilient and controlled business environment.

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Contact us for consultations on strategic consulting and legal support of trademarks to forecast and minimize risks, maintain reputation, and overcome difficulties occurring during #re-entering the market:
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Sources: https://www.bloomberg.com/news/articles/2025-04-17/russia-western-firms-balk-at-price-of-admission-for-post-war-return