Street in Moscow
Sanctions on Russia multiplied and many international companies stopped operating on Russian soil. But after all…
Nearly three years after Russia’s full-scale invasion of Ukraine, the luxury market in Moscow continues to thrive despite Western sanctions and the withdrawal of global brands.
High-end goods, including clothes from top designers, sports cars and jewelry, remain affordable to wealthy Russians – for alternative channels.
Major Western nations, including the US, European Union countries and the UK, have banned exports of luxury goods to Russia; and renowned brands such as Chanel, Hermès and LVMH left the market.
However, its products still occupy the shelves of exclusive stores such as TSUM in Moscow, according to .
Many brands have maintained their lease contractsindicating potential return plans. They did not stop being linked to the space they occupied.
According to a French businessman who sells luxury products in Moscow, these brands continue to supply products through intermediaries, even with the stores officially closed.
Sanctioned products enter Russia through intermediaries in neighboring countries – Kyrgyzstan, Kazakhstan or Azerbaijan – where trade with Western countries has increased since the imposition of sanctions.
Local buyers report little change. Natalia, a 51-year-old dentist, noted that only a few stores have closed, while others continue to operate. Sergei, a 61-year-old retiree, mocked the idea of Russia’s isolation, pointing to the continued availability of luxury goods.
Wealthy Russians also turn to “shoppers,” intermediaries who purchase luxury goods directly from boutiques in Europe and ship them to Russia.
This practice, which dates back to the 1990s, guarantees access to exclusive items such as jewelry, furniture and furs.
Demand also drove an increase in luxury sales in the Dubai, a new destination for wealthy Russians.
With sustained demand for Western luxury goods (and rental contracts in place), experts believe foreign brands will return to Russia. “It’s just a matter of time,” said Andrei, a stylist who serves elite clients.
