The Financial Times reports that wealthy Russians have found ways to bypass sanctions and buy luxury goods using private shoppers, resellers and cross-border smugglers.
European luxury brands have faced sales restrictions to Russia since Russia launched an all-out war with Ukraine in 2022, with the EU restricting legal trade to goods priced below 300 euros. There is. Despite these restrictions, wealthy Russians continue to obtain the latest Western collections through a thriving shadow market.
Social media platforms are now full of resellers partnering with both major Russian retailers and private customers, offering a discreet way around sanctions on luxury handbags and haute couture. Customs records show that trade was being rerouted through third-country intermediaries without such restrictions. For example, in September, more than 300 Bottega Veneta handbags, each costing an average of $1,800, were shipped from Dubai to Russia through a Chinese reseller.
Some brands and Russian importers are adapting their strategies to comply with sanctions standards. According to IBC Real Estate, almost half of the Western designer brands operating in Russia at the beginning of 2020 are still available, and new collections are regularly introduced to the market.
Sanctions spurred a boom in brokerage business. Mikhail, an Italy-based buyer, said he sent 10 to 20 parcels a week to Russia, earning commissions of up to 6,000 euros.
“Italians don’t care. For them, it’s important to sell the product and what happens to it after that is our business. In these stores everyone already knows me and I I also know my colleagues. Everyone knows very well where these clothes are going,” he said.
This year, Latvian customs authorities intercepted 60 shipments of luxury goods destined for Russia, many of which had artificially low declared values. Resellers often disguise these shipments as personal purchases by removing tags from the items.
Western brands could be held liable for export control violations if their products are discovered in Russia. Ekaterina Nogay, head of analysis at IBC Real Estate, said some companies are launching “capsule collections” with prices tailored to Russian sanctions restrictions.
“Although it may not be as obvious as exports of Western parts used in Russian-made weapons, exports of luxury goods also play an important role in strengthening Putin’s regime,” it said, tracking companies’ responses to the issue. Vitaly Vorovoy, a researcher at Squeezing Putin, an organization that supports Intrusion.
“Public cases of sanctions evasion reduce the general impact of sanctions against Russia,” Yulia Pavitska, sanctions program manager at the Kiev Institute of Economics, emphasized, adding that the Russian government still has access to Western products. He emphasized that it helps build a narrative that what can be done is possible.
The 28-year-old web designer from Moscow pointed out that export restrictions mainly affect middle-class shoppers, who are now avoiding luxury goods due to high resale prices.
“Russian wealthy people who used to have easy access to everything still get everything through fashion buyers, and nothing has changed for them,” she says.
Earlier, EU diplomats told welt.de that the EU plans to adopt the 16th sanctions package against Russia on February 24, 2025.
New EU sanctions target Russian propagandists and economy
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