In Moscow’s luxury shopping districts, despite Western sanctions and the massive withdrawal of global brands following Russia’s invasion of Ukraine in 2022, wealthy shoppers continue to buy Western luxury goods. Cars, jewellery, and clothing from leading designers are still available in the Russian capital, AFP reports.
Sanctions that do not work
“I don’t see any particular changes,” says Natalia, a 51-year-old dentist who is walking through the GUM shopping centre on Red Square.
“Some stores, such as Chanel, Dior and Hermès, have left. But all the others are still here. Even Brunello Cucinelli is here,” she adds.
Russian President Vladimir Putin and his supporters believe that the sanctions have failed. “Did they want to isolate us? You’re welcome! We are so isolated that it’s ridiculous,” sneers Sergei, a 61-year-old pensioner, as he leaves a luxury store.
Goods come through “third countries”
Most brands, including Chanel and Hermès, left the Russian market voluntarily. The US, EU and UK have banned the export of luxury goods to Russia. However, goods easily enter the country through “friendly” intermediaries in Central Asia and the Caucasus.
“Their exit is pure hypocrisy,” says a French businessman who sells luxury goods in Moscow. “Even after closing stores, brands continue to sell their goods through retailers.”
Export statistics show an increase in trade between Western countries and states such as Kazakhstan, Kyrgyzstan and Azerbaijan, which have close ties with Moscow.
Dubai instead of Europe
With travel to Europe becoming more difficult, wealthy Russians are increasingly choosing Dubai as a holiday and shopping destination. Moscow’s GUM shopping centre even advertises its prices as “more favourable than in Dubai”.
“It is possible to find everything you need,” says 38-year-old Olena, a manager of a luxury lingerie brand. “It’s a little more difficult, but it works.”
The sanctions have given a new impetus to “shuttle companies” – intermediaries who bring luxury goods from abroad.
“They work directly with brand representatives in Milan, Paris or London,” says Andrey, a 52-year-old stylist with clients among Russia’s elite.
The demand is so high that, according to experts, brands will return to the Russian market as soon as it becomes possible.
“It’s only a matter of time,” concludes Andriy.
