The United States and the European Union have banned luxury exports to Russia in order to penalise billionaires.
Oligarchs in Russia will no longer be allowed to purchase Hermès scarves, Harry Winston diamonds, Feadship boats, Mercedes vehicles, Cognac, or Champagne.
The European Union and the United States said Friday that they would no longer allow any luxury products to be sent to Russia as part of the fourth round of sanctions on Russia for its invasion of Ukraine.
“Those who fund Putin’s war machine should no longer be allowed to enjoy their luxury lifestyle while bombs fall on innocent people in Ukraine,” said Ursula von der Leyen, the president of the European Union’s executive arm, in a statement.
According to a White House information sheet, elites “should no longer be able to reap the benefits of this system while squandering the Russian people’s resources.”
Despite the fact that many luxury brands have already shuttered their outlets in Russia, this decision will prohibit shipments of high-end watches, vehicles, clothes, booze, and jewellery from entering the country.
The value of American luxury goods to Russia, according to the White House, is over $550 million per year.
Despite the fact that Russia contributes for a minuscule fraction of most high-end brand sales, denying the oligarch class access to luxury products, which have functioned as a cultural gateway to the West and a mark of aesthetic approval for many, is a very symbolic move.