Kalashnikov adds ‘military style’ clothing line to survive sanctions

Sanctions imposed by President Obama against Kalashnikov Concern in 2014 have prompted the iconic company to launch a “military style” clothing line.

Western sanctions levied against the company as a result of Russia’s annexation of Crimea in February 2014 continue to take a bite out of its profits. Executives plan to open 60 stores across Russia by the end of this year to adapt to the new reality.

“I do not understand how is it possible for us not to produce our own branded line of clothes and accessories,” Vladimir Dmitriev, marketing director of the Kalashnikov Concern, told the newspaper Izvestiya, Russia Behind the Headlines reported Tuesday.

Mr. Dmitriev noted that an iconic company like Ferrari makes 10 percent of its profit from clothing. To give reporters an idea of just how onerous sanctions have been to Kalashnikov’s bottom line, he told BBC May 6 that 70 percent of its hunting and sporting weapons were sold in Europe and the U.S. prior to 2014.

A spokesman for Kalashnikov told RBTH that executives are eying October as a preliminary rollout for clothing and accessories.

Kalashnikov USA of Tullytown, Pennsylvania, used to import the weapons prior to sanctions but was forced to cut ties with the company in 2014. The company has since moved to Pompano Beach, Florida, where it bills itself as an American manufacturer of Kalashnikov-brand guns, CNN reported Jan. 27.