The recent introduction of mandatory tagging of footwear in Russia has shown that up to 1.3 billion pairs of shoes are sold in the country on average per year. This is nearly three times more than previous official estimates, said Denis Manturov, the Russian industry and trade minister

The tagging has compelled market participants to legalize their businesses and exposed the actual size of illegal trade. Now, the government will be able to tax previously undeclared activities, Manturov added.

The Russian government’s assumptions were that up to half the market was unaccounted for, primarily due to sales in street markets.