How to check a Russian distributor before you sign

A distributor sends a polished presentation, a list of chains they "work with", and a request for national exclusivity. Before you reply, spend an afternoon on the checks below. Almost all of them are free, and they will tell you more than the presentation.

Step 1. Find the legal entity

A brand name on a presentation is not a company. Ask for the full legal name and the INN, the Russian tax number. A serious partner will send it without hesitation.

With the INN, look the company up in the Unified State Register of Legal Entities (EGRUL) on the Federal Tax Service website, egrul.nalog.ru. Commercial aggregators such as Rusprofile or Checko show the same data in a more readable form. Check:

• Age. A company registered last year promising national coverage deserves extra questions.
• Owners and director. Who actually owns it, and which other companies do they own?
• Registered address. A "mass registration" address used by hundreds of companies is a warning sign.
• Main activity code. Does it match wholesale trade in your category?

Step 2. Look at the money

Annual financial statements of Russian companies are public in the state register of accounting statements (GIR BO), bo.nalog.ru. Look at the last two or three years:

• Revenue. Does it match the coverage they promise? A company with small revenue will not carry national distribution for a new brand.
• Profit and debt. Losses year after year and growing short-term debt mean your invoices may wait.
• Trend. Growing, stable, or shrinking?

Step 3. Check the courts

Commercial disputes in Russia go to arbitration courts, and the case file index is public at kad.arbitr.ru. Search by company name or INN.

• Many cases where suppliers sue for unpaid invoices is the clearest red flag you will find.
• Disputes with brands or former principals tell you how partnerships with them tend to end.
• The company suing its own customers a lot is less worrying. It may simply be collecting debts.

Also check the enforcement proceedings database of the Federal Bailiff Service, fssp.gov.ru, for unpaid court decisions and tax debts.

Step 4. See what they really sell

Marketplace listings show the legal name of the seller. Search Wildberries and Ozon for products in your category and note which sellers appear. Then look at the candidate's own seller pages:

• Which brands do they carry today?
• Do they already sell a direct competitor of yours?
• How are their products priced? A distributor that dumps prices online will do the same to you.
• What do reviews say about delivery and service?

Step 5. Check trademarks

Russia is a first-to-file country: whoever registers a trademark first owns it there. Search the open registers of Rospatent (on the FIPS website) by the company's name as holder.

While you are there, check that your own brand is free, and file it in your company's name before the first shipment.

Step 6. Ask the right questions

• Which brands in our category do you carry now? Which did you lose, and why?
• Which chains and marketplaces do you ship to directly, and which through others?
• What will you invest in our launch, in money and people?
• What sell-out and stock data will you share, and how often?
• What volume will you commit to in year one, in writing?
• Can we speak to one of the brands you represent?

Vague answers to the first two questions are an answer in themselves.

Red flags in the first contract

• National exclusivity with no volume commitment. Exclusivity should be earned with numbers and lost when they are missed.
• The distributor registers your trademark or holds your conformity documents with no clause on transfer.
• No exit. No notice period, no rules for remaining stock or for who keeps the marketplace listings.
• Marketing funds with no reporting. Money you pay should come with proof of what was done.
• Long payment terms from day one for a partner you do not know yet.

What the checks cannot tell you

Registries show the past, not intentions. They will not tell you how motivated the team is, how your brand ranks in their priorities, or how they behave when sales drop. That part comes from conversations, references from other brands, and people in the market who have worked with them.