This was the result of an investigation conducted in collaboration with external experts. The investigation began after suspicions arose that one or more distributors were marketing and reselling Flügger products to the Russian market in violation of both cooperation agreements and guidelines.

Former business partner was posing as a Flügger representative

In this connection, it also emerged that a former long-standing business partner had been posing as Flügger’s representative without actually being so. Flügger terminated its collaboration with the former business partner in the spring of 2022.

-”This is completely unacceptable, and we are shocked that a long-standing partner has chosen to deceive us in this way. As soon as we became aware of this, we acted quickly and effectively. We have also significantly tightened our control mechanisms and internal procedures,” says CEO Sune Schnack, continuing:

– ”We have left Russia, and our policy is quite clear in that we want nothing to do with that market. This has also been clearly communicated to our partners. Nevertheless, someone has apparently chosen to go behind our backs and resell paint in violation of the rules. This is completely unacceptable, and we are doing everything we can to stop it.”

Flügger suspects that the resale to Russia took place via one or more distributors. Flügger has therefore terminated its cooperation with distributors in Kazakhstan, Estonia, Azerbaijan and Kyrgyzstan. Exports to these four countries together account for the same volume as a single large store in Denmark.

Cooperates with the police

In addition to discontinuing distribution, Flügger is pursuing legal action to shut down such activities on the Russian market. At the same time, the company has strengthened its internal processes.

As expected, the case has also led to inquiries from the authorities. Flügger is therefore cooperating with the police, who are investigating the circumstances of the case, including Flügger and its management. Flügger will update the market in accordance with applicable rules, if relevant.