Duty free shops asked for help due to "critical" situation

Opora Rossii, an all-Russian public organization for small and medium-sized businesses, plans to initiate a discussion in the government on the issue of supporting duty-free shops in the near future. This was told to RBC by the president of Opora Rossii, Alexander Kalinin.

In the current geopolitical situation, due to sanctions, the duty-free trade industry in RUSSIA has found itself “in the most critical situation” and is in dire need of “targeted support measures for the survival of companies,” Fatima Dzoblaeva, executive DIRECTOR of the Eurasian Duty-Free Association, told RBC.

Duty free shops are directly dependent on international passenger traffic, which has now declined, Dzoblaeva points out. Since February 28, the EU countries, followed by a number of others, have closed their airspace to Russian aircraft in response to a military special operation in Ukraine. Russia has imposed mirror restrictions on 37 countries, and flights to open countries have been canceled due to the risk of arrest of Russian aircraft. Moscow's Sheremetyevo Airport has already closed two of its five terminals due to reduced traffic and flight intensity.

Demand for goods in duty free stores in March 2022 fell by half compared to January-February, Dzoblaeva states. The purchasing power of passengers who still continue to travel, she said, has declined sharply: due to the sharp depreciation of the ruble, the cost of goods in duty free shops, denominated in foreign currency, has become unattractive.