Despite the number of sanctions imposed on Russia and the high number of companies that left the country after the attack on Ukraine, wealthy residents of Moscow still have plenty to choose from when it comes to Western brands. This applies to Western brands of cars, jewelry and clothing. The situation in Moscow shops is so miles away from the claims of Western politicians that their sanctions will lead to the collapse of the Russian economy and cut off Russia from the surrounding world. TASR informs about it based on the AFP report.
“I didn’t notice any big changes,” said Natalia, a 51-year-old dentist who went shopping at Russia’s largest department store, GUM, which is located on Red Square across from the Kremlin. “What do I know, maybe the three department stores Chanel, Dior and Hermés have left here. Everything else is as it was in the past. Even the Brunello Cucinelli fashion house has remained.” she added with a nod to the Italian fashion brand.
According to many For Muscovites, like President Vladimir Putin, Western sanctions have failed to isolate Russia from the global economy. “They want to isolate us? Please! Such isolation, it’s ridiculous,” replied 61-year-old pensioner Sergej, coming out of a luxury store.
The USA, the European Union and Britain banned the export of all luxury goods to Russia as part of the sanctions. Some brands after the start of the war in Ukraine they left the Russian market voluntarily. These include Chanel, Hermés, LVMH and Kering. However, nearly three years after Russia invaded Ukraine, products bearing their logo are still being sold on store shelves in Moscow, a city of 13 million people.
“Their announced departure is pure pharisaism,” said a French businessman selling luxury goods in the Russian capital who did not want to be named. “Even though their stores are officially closed, these brands continue to sell to Russians through ‘marketplaces’ and through dealers,” he added.
The proof is the export statistics. They pointed to the rapid growth of trade between Western countries and states such as Kyrgyzstan, Kazakhstan and Azerbaijanpost-Soviet countries that still have close relations with Russia. Significant growth occurred precisely after the imposition of Western sanctions on the Russian Federation in response to the attack on Ukraine.
“One way or another, everything continues to be imported,Elena, a 38-year-old marketing manager of a luxury underwear company, told AFP. “It’s a bit more complicated, but in the end it’s still possible to get to the customers everything they need,” she added while shopping at the CUM department store, which offers a large number of luxury brands.
CUM itself offers branded products on its website Prada, Yves Saint Laurent and Alexander McQueen. These are all brands that have officially left the Russian market.
After the direct export of Western brands to Russia stopped, Russian retailers found a way to get the goods that their customers are interested in. Sanctions revived the “shoppers,” who became famous in the 1990s after the collapse of the Soviet Union. They regularly traveled to Europe and returned with full suitcases to deliver luxury goods to their customers. Today, buyers have direct contracts with large boutiques or shopping centers, said fashion designer Andrej (52).
“They take orders for goods from furniture to jewelry, clothes to fur coats directly for representatives in Milan, Paris and London,” he added to AFP. Due to the unabated demand for luxury goods from the West, wealthy Russians are convinced that these companies will return to the Russian market as soon as they can. “It’s only a matter of time,” said Andrej.
