iPhone 16 unveiled in Russia as retailers skirt Apple's export ban

Russian retailers have launched pre-sales of Apple's latest iPhone, circumventing the company's export ban to Russia and giving consumers the chance to pre-order devices hundreds of dollars more expensive than in the United States.

Russia's leading electronics retailer M.Video-Eldorado and mobile network operator MTS both claimed on Thursday to be the first in Russia to unveil Apple's new iPhone 16.

M.Video said phone deliveries would begin from next week. MTS said it expected physical sales to begin very soon.

Apple paused all its product sales in Russia in March 2022 and halted services like ApplePay in response to Moscow's invasion of Ukraine while Western-imposed sanctions sought to curb technology exports to Russia.

Apple did not immediately respond to a request for comment outside U.S. business hours.

Russians will have to fork out several hundred dollars more than U.S. consumers for the iPhone 16.

Foreign brands that halted exports to Russia now take circuitous routes to reach consumers, typically through countries that have not imposed sanctions on Russia, such as Turkey, Kazakhstan, China, India and the United Arab Emirates.

Reuters could not determine which route into the country the new iPhones would be taking.

The parallel, or grey, imports scheme, endorsed by the Russian government for brands that exited Russia since the invasion, keeps the goods of companies that sought to leave Russia available and shows the challenge firms face in controlling supply chains when exiting a market.

M.Video said prices would start at 112,999 roubles ($1,225) for the 128GB iPhone 16, over $400 more expensive than the U.S. price of $799. The 1TB iPhone Pro Max was available for pre-order in Russia for 249,999 roubles ($2,710), compared to the U.S. price of $1,599.

MTS prices were marginally higher than M.Video's and said it required a 25,000-rouble deposit for pre-orders.

Western goods and technology remain popular in Russia, a potential vulnerability that Moscow wants to reduce with domestic production.

The Kremlin has told officials to stop using iPhones, saying that Western intelligence agencies have compromised them using surveillance software. Apple has denied those claims.