NYT: sanctioned luxury cars are imported to Russia through the UAE
Source：Kommersant
From：Taiwan Trade Center, Moscow
Update Time：2023/06/03
Demand for luxury goods in Russia remains strong despite the sanctions. Such goods are imported to Russia through the United Arab Emirates (UAE). This was reported by The New York Times (NYT) newspaper, citing private and large luxury sellers in the UAE.
According to the publication, some Russians buy expensive cars, the supply of which to Russia is prohibited due to sanctions, for themselves or further resale in Dubai, from where they are then sent to Russia. In Dubai, lots of cars are also purchased by some car dealers. The newspaper notes that, since the cars sold in the city are originally made for a hot climate, local dealers have to adapt them to the conditions of Russian winters before selling them.
Electronics and other luxury items are also supplied from Dubai to Russia, the official imports of which are embargoed due to EU and US sanctions. Some electronics business owners hire employees who speak Russian or teach it on their own to negotiate with clients from Russia, writes NYT. One of the sellers told the publication that a buyer in Russia wanted to order a batch of 15,000 iPhones, but backed out of the deal when he received a better offer.
According to Bright Zone International General Trading L.L.C., the owner of Dubai-based wholesale company Bright Zone International General Trading L.L.C., local companies “compete fiercely” among themselves for Russian customers. The director of the luxury car showroom, Ekaterina Kondratyuk, also told the publication that the military conflict between Ukraine and Russia had no effect on wealthy Russians.
According to the NYT, the owners of Western automakers deny the fact that their cars are sold to Russia through other countries, as well as a sharp increase in sales in the UAE. Automakers will have trouble tracking reseller sales, industry officials say. Officials, in turn, are focused on the export control of dual-use goods. The U.S. has also designated the UAE a "focus country" because of its role in trade with Russia, with officials particularly worried about the electronics trade, as chips in such goods could be used for military purposes, an unnamed U.S. official told the newspaper.
The Financial Times reported the day before, citing trade data, that US$1 billion worth of sub-sanctioned European dual-use goods went missing while transiting Russia to Kazakhstan, Armenia and Kyrgyzstan. Goods from some categories, including gas turbines, ended up missing reached their final destinations in the countries of Central Asia.
Source: https://www.kommersant.ru/doc/5979399?from=vertical_lenta