Parallel import of luxury goods: how sanctioned products enter Russia.


Russian tycoons find ways to evade Western sanctions
Russian tycoons have found ways to bypass Western sanctions in order to continue purchasing luxury goods. They use the services of intermediaries, resellers, and smugglers. Customs records indicate that trade is organized through countries where sanctions do not apply. For example, branded Bottega Veneta bags are exported from Dubai via China.
In addition, 'private buyers' have become popular among Russians. European merchants send dozens of parcels to Russia weekly, with profits in the thousands of euros. Italian sellers, in turn, do not pay attention to the destination of the goods.
It is also worth noting that Western brands have started to release products with prices that comply with the sanctions restrictions. Smuggling of luxury items is also thriving. Since the beginning of 2024, Latvian customs officials have confiscated 60 batches of goods that were attempted to be imported into Russia with fake declarations.
Analysts believe that evasion of sanctions reduces pressure on Russia. However, intermediaries and brands involved in these schemes may be held accountable. In the shadow market, prices for Western goods are becoming unaffordable for the middle class. In addition to luxury items, cars of Western brands are also illegally imported.
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