On a dusty roadside on the outskirts of Dubai, Sohrab Fanny is capitalizing on the West’s response to the war in Ukraine: His shop is installing seat heaters in cars that are re-exported to Russia.
Twelve thousand heating pads sat in his warehouses for years, he said, until the Russian invasion and resulting Western sanctions pushed American, European and Japanese automakers out of the Russian market. Now, the Russians import these cars via Dubai, in the United Arab Emirates—and because cars shipped to the Middle East tend to be made for warm climates, accessory shops like Mr. Fanny do quick work of getting them ready for winter weather.
“When the Russians came, I sold everything I had,” Mr. Fanny said, so he ordered several thousand seat heating pads. In Russia, they have penalties. Here, there is no. Here, there is work.”
More than a year after President Vladimir Putin’s invasion, Western sanctions are emerging It hurt the Russian economy But don’t disrupt it. The global trade network has been modified, allowing the Russian leader to largely fulfill a key promise: that the war will not significantly disrupt the consumption lifestyle of the Russian elites.
Russia still imports coveted Western goods, supported by a global network of middlemen.
In Moscow, the latest iPhones Available For same day delivery at less than retail price in Europe. Shops Still stock Gucci, Prada and Burberry. Selling cars List of sites New Land Rover, Audi and BMW cars.
All of the West’s leading electronics, automotive and luxury brands announced their withdrawal from Russia last year. Not all of their goods technically violate sanctions, but trade with Russia has become very difficult in the face of public anger, pressure from employees, and restrictions on semiconductor exports and financial transactions.
However, Russian demand for luxury goods remains strong, and merchants in Dubai and elsewhere are filling it.
“The rich always stay rich,” said Ekaterina Kondratyuk, communications manager for a luxury car showroom in Dubai, which recently shipped a $300,000 Porsche Cayenne Turbo GT to a Russian dealership. She added that the war “didn’t affect them.”
Anton Troyanovsky Reported from Dubai and Jack Ewing from New York. Contribute to the preparation of reports Vivian Nerim from Riyadh, Saudi Arabia, Ahmed Al-Omran From Jeddah, Saudi Arabia and Oleg Matsnev from Berlin.
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