What sanction? Rich Russians are lapping up luxury cars in great numbers
The economic sanctions imposed on Russia due to its war against Ukraine have not dented the sales of luxury cars in the country. The New York Times reports that rich people in Russia continue to buy luxury cars even if the car manufacturers are not selling their vehicles directly in the sanction-hit country. The report claims that rich Russians are buying luxury cars in other countries where the sanction is not there, and the vehicles are available to purchase. After buying the vehicle from there, the consumers ship them to Russia.
Russia’s invasion of Ukraine turned the country into an international pariah, and stringent economic sanctions quickly followed. These sanctions forced several Western companies across different sectors to leave the Russian market. However, it becomes clear that where there is a will, there is a way. Russian rich people are making practical implementation of this proverb by finding new ways to import luxury vehicles into the sanction-hit country.
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Rich Russian consumers are finding new ways to sidestep the economic sanctions and corporate exits and get the luxury goods they desire. The New York Times reports that they have found willing partners in the Middle East to fuel their desire for luxury goods. The report claims that a large number of luxury cars from different Western manufacturers like Porsche, Land Rover, RAM, and Chevrolet are finding their way into Russia via the Middle East. Clearly, the war didn't affect the rich Russians.
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Being particular, the US publication has written that recently a Porsche Cayenne Turbo GT has been shipped to Russia, while RAM trucks have become the recent favourite of consumers in the sanction-hit country. Rolls-Royce Phantom and Cullinan Black Badge, Land Rover Range Rover, Chevrolet Tahoe and Equinox SUVs are also finding an increasing number of takers in the country.
Interestingly, while some consumers are buying the vehicles on their own, Russian car dealerships that have lost their official affiliations with Western brands are organising their own imports to sustain the business. They are reportedly importing hundreds of cars at a time. The report also claims that such indirect imports accounted for 12 per cent of the 626,300 new passenger vehicles sold in Russia in 2022. This translates to more than 75,000 vehicles. The number could be even higher as an exact figure is not available.
