Russia has legalized “parallel imports,” Prime Minister Mikhail Mishustin announced Wednesday. Such goods are otherwise known as pirated knockoffs of trademarked products and services.

This is just one of Russia’s retaliations in response to the massive trade and economic sanctions that the U.S. and other Western nations have imposed on Russia following its unprovoked invasion of Ukraine on Feb. 24, 2022.

Russia President Vladimir Putin is demanding that European nations that depend on it for oil and gas begin paying for it in rubles, effective April 1, 2022. The EU responded by calling the demand “blackmail.”  The Russia Central Bank has also increased interest rates to 20%. These two actions are helping to stabilize the ruble.

Western Sanctions

Hundreds of Western clothing, food, medical, health and financial services companies and brands have pulled out of Russia, or have said they will cease doing business in Russia.

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) has expelled Russian banks and financial institutions from its global interbank payments system, and major American credit card companies, including Visa, Mastercard and American Express, have exited Russia. Assets of Russia’s central bank have also been frozen.

Russia’s retail industry has been upended by major companies, including Apple Inc., H&M, McDonald’s and Nike, to indefinitely curb sales and leave the country, Reuters reports.

Speaking at a televised government meeting, Mishustin said that Russia needs to turn to “parallel imports” to ensure that Russians will continue to have access to certain goods. “This approach will guarantee the shipment of goods to our country, in spite of the unfriendly actions of foreign politicians,” Mishustin said.

Russia Ministry of Industry and Trade

Russia’s Ministry of Industry and Trade will determine which products and services it will import as parallel imports, the prime minister said.

The Federal Anti-Monopoly Service said that parallel goods and services that compete with trademarked products will result in “a decrease in retail prices for these goods.”

The Biden Administration announced Wednesday that it will increase its sanctions against Russia, but it has not yet specified what those additional sanctions will be.