Russian Drug Import Duties Row Intensifies

Proposals by the Russian Federation to raise import duties on pharmaceuticals have generated intense controversy, with, say local sources, "irreconcilable drug market factions" digging in for battle.

The first "faction" consists of heads of the huge government health establishments and professional associations, who want the 10% import duty raised to 30% as soon as possible. The other group, wholesale distributors and international companies with Russian affiliates or subsidiaries, totally oppose any increase. There is also division between western companies, which are keen to supply the perpetually under-supplied Russian market, and domestic firms which say the import duty issue is one of survival for them; they either succeed in reducing imports or go out of business.

Major campaigns have been launched, with the federal medical industry committee Rosmedprom, the Biopreparat and Ferein companies and the Russian drug works association lined up against major distributors such as Biotek, Interlizing and SIA International, with the Association for the Promotion of International Medication Producers. But Russia's leading drug distributor, Farmimex, says the duty plan is a "crime against the nation."