Russia’s economy is under pressure due to severe Western sanctions imposed in the aftermath of Vladimir Putin’s invasion of Ukraine; hence, affluent Russians are ‘panic purchasing’ fine jewelry and watch with a high resale value.
The rouble’s value is decreasing; hence, many of Russia’s rich have opted to invest in high-end jewelry and watches, which have a high resale value. Designer gems and timepieces, like gold, may hold or even rise in price due to economic turbulence brought on by war and strife. Many of the world’s greatest corporations, including Apple, Nike, Shell, and BP, withdrew from Russia once the west imposed the sanctions. On the other hand, European luxury brands have persisted and have reported increased sales.
Russian Wealthy in Panic
Bulgari’s jewelry sales in its Russian outlets have soared in recent days; this most probably resulted from international sanctions imposed on Putin to restrict the transfer of funds. Following Putin’s invasion of Ukraine, certain Russian institutions were cut off from SWIFT financial messaging facilities, further limiting cash circulation. Bulgari’s CEO, Jean-Christophe Babin, claimed in an interview with Bloomberg that the move benefited revenue and that Bulgari’s jewelry is a “secure investment”. Other premium brands offered in the nation include Cartier, Rolex, and Swatch’s Omega watches, in addition to Bulgari.
The currency fell by 30% during early trade before easing back to a 20% loss. Its demise might wipe away the savings of ordinary Russians; civilians have been lining up at ATMs around the nation to withdraw cash. This week, the US severed ties with Russia’s central bank; thereby it now prohibits Americans from conducting business with it and severely limits Russia’s capacity to protect its currency.
In addition, the US put restrictions on the state investment fund. One official declared that Joe Biden’s goal was to guarantee that the Russian economy regresses as long as Putin continues his invasion of Ukraine.’
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