NewsSociety

Brutal Violation the Crimea-Related Sanctions by “Avon” Companies

AVON

In recent publications, our Association researched carefully the activities of the so called “Federal State Unitary Enterprise” “Post of Crimea” that was formed illegally to “maintain postal communication” in the Crimea, by the order of the Government of Russia, 2014 № 648-r [1], [2] including the “official annual reports” of the “Post of Crimea” in 2015-2020. Those “reports” prove clearly that the “Post of Crimea” signed and executed as minimum since 2015 the commercial agreements with “Avon Beauty Products Company,” LLC, registered in Moscow, Russia (tax code 7708234256) [3].

Regarding those reports [4-7] the annual income of “Post of Crimea” from distribution and realisation of the products of the “Avon” in the Crimea is approximately 30-60 million rubles. And more, Russia-registered “Avon” does not hide its own activities in the Crimea on its own web-sources [8]. Regarding Russia’s registers of legal entities, the “Avon Beauty Products Company” is 100% owned by the Netherland’s company “Avon Netherlands Holdings II B.V.,” company number (KVK) 34287768, located and registered in Amsterdam. And more, regarding the Netherland registers, the “Avon Netherlands Holdings II B.V.” is fully controlled by the US company “New Avon LLC” [9], formerly “Avon Products, Inc.” [10] located in New York [11].

Let us remind our readers that on 30 July 2014, the Council of the EU adopted additional measures restricting trade with and investment in the Crimea. On 18 December 2014, the Council further restricted investment in the Crimea, trade in goods and technology for use in certain sectors in the Crimea were restricted. The US sanctions regarding the Crimea, established in 2014, cover all issues related to operating in the Crimea; leading an entity operating in the Crimea; materially assisting, sponsoring, or providing financial, material, or technological support for goods or services to or in support of a “Russia’s senior officials” acting in the Crimea.

So, the common commercial activities of the “Avon Beauty Products Company” (Moscow, Russia), “Avon Netherlands Holdings II B.V.” (Amsterdam, Netherlands) and “New Avon LLC” (New York, USA) in the Crimea are the direct, systematic and massive violation of the sanctions regimes, established by the European Union and the U.S. Agreements between “Avon” and “Post of Crimea” are the direct form of financial support by “Avon” companies to the Russian illegal “governing infrastructure” in the Crimea in large volumes, which allows to the “Post of Crimea” to get large commercial income.

So, our Association sent official submissions, describing those facts, to the governing institutions of the European Union, the Netherlands and the United States with mandates in areas of external relations and sanctions policy, where they were asked to react, in the framework of their mandates, on the above mentioned brutal violation of the sanction policy by “Avon” companies, united in common corporation, and to inform our Association on the achieved results of their activities. We also hope that those Crimea-related illegal activities of the “Avon” companies may fall into the scope of Ukrainian legal enforcement bodies’ actions.

1. http://static.government.ru/media/files/41d4d649f96f5d81fc0e.pdf

2. https://arc.construction/18733

3. https://www.list-org.com/company/15077

4. https://digital.gov.ru/uploaded/files/doklad-o-finans-hoz-deyat-za2015g.pdf

5. https://digital.gov.ru/uploaded/files/doklad-o-finansovo-hoz-deyatelnosti-fgup-pochta-kryima-za-2016.pdf

6. http://www.crimea-post.ru/wp-content/uploads/2016/06/doklad-fin-hoz-za-2019.pdf

7. http://www.crimea-post.ru/wp-content/uploads/2016/06/doklad-fin-hoz-za-2020.pdf

8. https://avonlab.ru/punkty-vydachi-zakazov/kryim.html

9. https://www.bloomberg.com/profile/company/1499003D:US

10. https://opencorporates.com/companies/nl/34287768

11. https://www.winmo.com/open/company/associations-and-organizations-foundations-and-cultural-institutions/ny/new-york/new-avon-llc/2024

Sources: Association of Reintegration of Crimea

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