Nokia Cell Phones Fished Up in St. Petersburg
// Large conduit for gray import of cellular phones is shut off
Kommersant found out that last conduits for gray import of Nokia cell phones to Russia were cut off a few days ago. After St. Petersburg police had seized a consignment of 40,000 Nokia phones to the amount of $15 million, two St. Petersburg companies, Teleko and VVP, practically stopped buying Nokia phones. Experts predict that reduction in buying will lead to decrease in Nokia’s share at Russian market.
Officials of St. Petersburg branch of Economic Crimes Administration seized a consignment of 40,000 Nokia phones on May 6. The criminal case was initiated according to Article 188, Part 4 of the Crime Code of Russia (“Contraband”).
The consignment was intended for St. Petersburg group of companies Teleko. Gray import through customs in Moscow became difficult after the seizure of a large consignment of cell phones in August 2005. Thus, several companies in St. Petersburg became major operators of the gray market, Teleko and VVP among them.
The consignment seized on May 6 consisted of Nokia phones from $350 and up. The total cost of seized phones reached nearly $15 million. Anton Smirnov, president of Teleko, admitted having heard of the seizure but claimed that his group of companies has nothing to do with it.
The seizure had yet another consequence: VVP company stopped buying Nokia cell phones lately.
This will produce a negative effect on Nokia’s business in Russia soon. Nokia may lose up to 10 percent of its share in Russian market. Nokia’s share now makes up 21 percent. The reduction of cell phone market will cause consumer prices on Nokia phones go up by 10-15 percent by the end of the summer.
Dmitry Zakharov; Andrey Tsyganov, St. Petersburg
All the Article in Russian as of June 06, 2006
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