SALES OF LUXURY GOODS BOOM IN RUSSIA AS COUNTRY’S RICH PANIC-BUY JEWELLERY, WATCHES

Fri 04 March 2022:

Even as Russia’s economy is collapsing as a result of punishing Western sanctions imposed following Vladimir Putin’s invasion of Ukraine, wealthy Russians are ‘panic buying’ fine jewelry and watches with high resale value.

As the value of the rouble continues to decrease, many of Russia’s wealthy have opted to invest in luxury jewelry and watches, which have a high resale value.

Designer gems and timepieces, like gold, can hold or even rise in price following economic turbulence caused by war and strife.

Following the implementation of Western sanctions, many of the world’s largest corporations, including Apple, Nike, Shell, and BP, withdrew their operations from Russia. Luxury European brands, on the other hand, have persisted and claimed an increase in sales.

Bulgari’s jewelry sales in Russia have grown in recent days as a result of international sanctions imposed on Putin to restrict the movement of funds.

Following Putin’s invasion of Ukraine, certain Russian institutions were cut from SWIFT financial messaging facilities, further limiting cash mobility.

In an interview with Bloomberg, Jean-Christophe Babin, Bulgari’s chief executive, said the move probably boosted business and characterized Bulgari’s jewellery as a ‘safe investment.

Along with Bulgari, other luxury brands such as Cartier, Rolex and Swatch’s Omega watches are available in the country.

During early trading, the currency plunged 30 per cent before easing back to 20 per cent down. Its collapse could wipe out the savings of ordinary Russians, many of whom have been seen flocking to ATMs throughout the country to empty their accounts.

The United States severed ties with Russia’s central bank this week in a new wave of sanctions that practically prohibits Americans from doing business with it and severely limits Russia’s capacity to defend its currency.

Furthermore, the US put restrictions on the state investment fund, with an official declaring Joe Biden’s intention was to ensure that the Russian economy ‘goes backward as long as Putin goes forward with his invasion of Ukraine’.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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