Brands Without Visas

Following Russia's full-scale invasion of Ukraine, global companies left the Russian market. In April 2022, Smart Import, a Sberbank-controlled entity, emerged with the aim of restoring access to banned goods through parallel import schemes.

By analysing over 220 million USD worth of customs data, this team of journalists uncovered transit routes spanning Hong Kong, the UAE, Serbia, Lithuania and Uzbekistan. Despite formal embargoes and public anti-Western rhetoric, Smart Import now supplies the full range of Western consumer goods to Russia by using offshore intermediaries and misdeclaring values.

The investigation involved analysing the customs database and corporate records, as well as conducting fieldwork in Lithuania with partners from the Belarusian Investigative Centre. It reveals how loopholes and a lack of enforcement render sanctions ineffective, allowing sanctioned banks and shadow intermediaries to flourish.

Key Findings 

• More than $220 million worth of goods were imported via Smart Import, a company owned by Sberbank, which is under sanctions.
• Despite the formal sanctions, $108 million worth of Apple products were imported.
• Key transit hubs include Hong Kong, the UAE, Lithuania, Serbia and Uzbekistan.
• Misdeclared prices (e.g. a Balenciaga jacket for $4) were used to bypass controls.
• Brands involved include Apple, Lego, Adidas, Calvin Klein, Tommy Hilfiger, Sony and Dyson.
• The Lithuanian logistics company Melynsilis Terminal plays a key intermediary role.
• Goods are imported without the consent of the rights holders by exploiting legal grey zones.
• Smart Import effectively serves as the sanctioned regime’s import backbone.

Photo credit: Chronicles.Media

-----------------------------------------

IMPACT

Brands Without Visas investigation revealed that at least $8 million worth of goods registered to Smart Import passed through Lithuania.  More than half of this volume was processed through one logistics intermediary: the Lithuanian company UAB Mėlynšilis Terminal.  Siena found that Mėlynšilis' sole owner is Antonina Miljauskene, a Lithuanian civil servant who works as an adviser in the Department of Supervision of Social Services under the Ministry of Social Protection and Labour. Following the publication of the investigative article, the Department of Supervision of Social Services under the Ministry of Social Protection and Labour has reacted immediately and dismissed Miliauskienė from her position.