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H&M Faces Russian Criminal Investigation Over Customs Duties

  • Customs service said H&M didn’t pay $42 million in duties
  • H&M confirms criminal investigation without giving details
H&M sales in Russia were 6.23 billion kronor in the financial year ending Nov. 30, according to a company report.

H&M sales in Russia were 6.23 billion kronor in the financial year ending Nov. 30, according to a company report.

Photographer: Andrey Rudakov/Bloomberg

Updated on

Russian authorities opened a criminal investigation into clothing retailer Hennes & Mauritz AB for allegedly avoiding 3.1 billion rubles ($42 million) of customs duties.

The Federal Customs Service opened the case in December against H&M’s Russian unit for not including some of the license fees it pays to its Swedish parent in declarations when importing goods from 2016 to 2019, according to documents seen by Bloomberg News.