No Warranty, No Transparency: The Risky Business of Importing Medical Equipment to Russia

Russian companies circumvent sanctions to continue importing high-tech medical equipment from Western countries. MRI scanners, X-ray machines, and other medical devices are brought into the country through intermediaries in Kazakhstan, Belarus, and Turkey. A full report by Transparency International Russia reveals how these schemes inflate prices, void manufacturer warranties, and create significant corruption risks.

The study highlights the role of intermediaries, some of whom are registered at fictitious addresses and linked to importers previously involved in dubious schemes. One case study demonstrates that the cost of equipment imported through these channels can increase by 50% or more.

“The market for high-tech medical equipment carries high corruption risks. This is because the pricing of products such as MRI scanners and X-ray machines cannot be strictly regulated. Their costs vary significantly depending on configuration, and logistics play a major role in price formation,” says Natalia Korotonozhkina, the report’s author and an analyst at Transparency International Russia.

The report also reveals that a substantial portion of the equipment is supplied through intermediaries registered at fictitious addresses or affiliated with Russian importers. As a result, inflated prices, the lack of manufacturer warranties, and a lack of transparency in transactions pose serious risks to consumers.

“The situation has worsened since the full-scale invasion of Ukraine. To import medical equipment from the U.S. and the EU, Russian importers are forced to rely on foreign trade and payment agents, as well as transport companies. This creates an environment of uncertainty, which dishonest suppliers exploit to drive up prices through front companies or intermediaries in so-called ‘friendly’ countries,” adds Natalia Korotonozhkina.

Transparency International Russia emphasizes the need for Western manufacturers to conduct stricter due diligence on supply chains and to enhance transparency in their dealings with intermediaries.

The full report is available here:

“Diagnosis of Supply Chains: Corruption and Money Laundering Risks in the Import of Medical Equipment to Russia”