Luxury amid sanctions: FT explains how high-end goods reach Russian consumers
Illustrative photo: Journalists expose a scheme for supplying luxury brands to Russia, violating sanctions (Getty Images)
Russian oligarchs have found ways to bypass Western sanctions to purchase luxury goods. Despite the sanctions, they continue to buy high-end brands using intermediaries, resellers, and smugglers, reports the Financial Times.
Journalists noted that customs records reveal trade being redirected through intermediaries in countries where sanctions do not apply. For example, they discovered documentation for shipments of Bottega Veneta bags that were imported from Dubai via China.
In addition, the services of personal shoppers are popular among Russians.
It is reported that buyers in Europe send dozens of parcels to Russia weekly, earning thousands of euros from this.
Journalists also pointed out that Italian sellers turn a blind eye to the final destination of their products.
It was also noted that Western brands have started releasing special product lines with prices that comply with sanction limits.
The smuggling of luxury goods is also thriving.
Latvian customs officials reportedly confiscated 60 shipments of luxury items since the beginning of 2024. The items were being smuggled into Russia with falsified declarations.
The article also highlights that maintaining access to luxury items strengthens the Russian regime by promoting the narrative that sanctions are supposedly ineffective. However, shadow market prices have hit the middle class, which can no longer afford Western goods.
Yulia Pavytska from the Kyiv Institute of Economics noted that sanctions evasion reduces the overall impact of economic pressure on Russia. Meanwhile, intermediaries and brands involved in these schemes could be held accountable for violating export controls.
In addition to clothing, cosmetics, and other luxury items, cars from popular Western brands are being illegally imported into Russia. Previously, reports detailed how brands like Ferrari, Rolls-Royce, Lamborghini, and others make their way into the country.
It should be noted that the EU has already begun work on the 16th package of sanctions against Russia.
