Rich Russians 'panic buy' luxury goods that may have a high resale value as the rouble tumbles

Rich Russians ‘panic buy’ luxury jewellery and watches that may have a high resale value as the country remains in financial meltdown due to crippling Western sanctions brought in after Vladimir Putin’s invasion of Ukraine. 

Bulgari has seen an increase of their jewellery sales at their Russian stores during the last few days following the international sanctions issued to Putin, which has restricted the movement of cash.

Many of the country’s wealthy have sought to spend big on luxury jewellery and watches that may have a high resale value as the rouble value continues to tumble.

Like the price of gold, designer jewels and watches can hold and in some cases, increase their prices following the ‘economic turmoil caused by war and conflict’. 

The Italian jeweller’s chief executive officer Mr Jean-Christophe Babin said: ‘In the short term it has probably boosted the business’ and described Bulgari’s jewellery as a ‘safe investment.’ 

Bulgari (pictured) has seen an increase of their jewellery sales at their Russian stores during the last few days following the international sanctions issued to Putin, which has restricted the movement of cash

Many of the country’s wealthy have sought to spend big on luxury jewellery and watches that may have a high resale value as the rouble value continues to tumble (file image)

Like the price of gold, designer jewels and watches can hold and in some cases, increase their prices following the ‘economic turmoil caused by war and conflict’

Speaking in an interview with Bloomberg, Mr Babin opened up about SWIFT – which acts as the messaging system for international payments, connecting more than 11,000 financial institutions worldwide – making it ‘impossible to export to Russia’.

In response to the Putin’s invasion of Ukraine, SWIFT ‘disconnected select Russian banks from their financial messaging services’m restricting the movement of cash in further.  

He added: ‘How long it will last it is difficult to say, because indeed with the SWIFT measures, fully implemented, it might make it difficult if not impossible to export to Russia.’

The currency sank 30 per cent in early trading before easing back to stand 20 per cent down. Its collapsing value risks wiping out the savings of ordinary Russians, who have been seen flocking to ATMs all over the country to empty their accounts, including in Putin’s home city of St Petersburg.

In response to the Putin’s invasion of Ukraine, SWIFT ‘disconnected select Russian banks from their financial messaging services’m restricting the movement of cash in further (file image)

Despite many companies like Apple, Nike and oil titans Shell and BP pulling out of Russia, as Western nations imposed sanctions on Putin’s country after he launched a brutal war on neighbouring Ukraine, luxury European brands have remained and seen an increase in sales (Russian woman trying on a hat in a Prada boutique in Moscow)

Putin announced earlier this week a diktat to ban the depositing of cash in any foreign accounts from tomorrow, to stop cash, especially held by rich Russians, moving out of the country and further destablising the economy.

A fresh barrage of sanctions this week saw the US cut off the Russian central bank, effectively preventing Americans from doing business with it and severely limiting Russia’s ability to defend its currency.  

The US also imposed sanctions on the state investment fund, with an official saying Joe Biden intended to ensure the Russian economy ‘goes backward as long as Putin goes forward with his invasion of Ukraine’.

Despite many companies like Apple, Nike and oil titans Shell and BP pulling out of Russia, as Western nations imposed sanctions on Putin’s country after he launched a brutal war on neighbouring Ukraine, luxury European brands have remained and seen an increase in sales.

Alongside Bulgari, which is owned by French holding multinational conglomerate LVMH, other luxury brands such as Cartier, Rolex and Swatch Group’s Omega watches are still being sold in the country.

Babin added: ‘We are there for the Russian people and not for the political world. We operate in many different countries that have periods of uncertainty and tensions.’