The luxury fashion sector in Russia is witnessing a remarkable resilience despite the sanctions imposed following the invasion of Ukraine. Major European brands have faced significant sales declines, yet affluent consumers have found alternative avenues to access high-end fashion items.
Since 2022, the European Union has restricted the sale of luxury goods to Russia, limiting transactions to items valued under 300 euros. This has inadvertently fueled a parallel market, with affluent Russians relying on a network of resellers, personal shoppers, and smugglers to obtain exclusive designer products. Social media platforms like Instagram and Telegram have become vital channels for these resellers, who offer high-demand goods sourced from Europe and the UAE.
One notable figure in this underground market is Lliyenish, a personal shopper boasting over 10,000 social media followers. Customs records indicate that countries such as China and Dubai serve as intermediaries for luxury goods destined for Russia. A significant shipment of over 300 Bottega Veneta bags, valued at around $1,800 each, was recently sent from Dubai to Russia through a Chinese-based reseller.
While some brands attempt to navigate the restrictions by adjusting prices just below the imposed limits, these actions are perceived by analysts as efforts to circumvent sanctions. Independent resellers have reported a surge in their operations, with one Italian reseller, Mikhail, claiming to ship up to 20 packages weekly, earning substantial commissions.
This underground trade not only preserves access to luxury goods for the elite but also has broader political implications. Experts argue that the continuous influx of luxury items undermines the effectiveness of sanctions, challenging the notion that Russia is isolated from the global market.