In March 2022, the European Union (EU) imposed various sanctions on Russia in response to its invasion of Ukraine. One of them was expanding the export ban, which includes cars worth more than 50,000 euros. The aim was to stop the war by cutting off the supply of luxury goods enjoyed by the Russian elite.
Despite EU sanctions, luxury car imports are being spotted all over Russia. The Financial Times revealed that over 50 luxury cars are being sold on the Russian car advertising website Auto.ru. It also added that it had identified five Russian companies smuggling vehicles worth more than 50,000 euros (about $51,588).
Despite Sanctions, Smuggling Continues
The Reality That Threatens South Korea
The Russian smugglers reportedly sold the vehicles for an average margin of $19,900. One of the five smugglers, AvtoImport, even advertised a BMW 530 d M Sports model for $68,200, citing an article from Autopartner BGL. However, the vehicle was sold for 31,900 euros (about $31,913) on Autopartner BGL’s site. That’s a price difference of over $35,000.
The EU responded with stronger sanctions. However, despite the EU’s response, smuggling did not decrease; instead, it has reached a point where smuggling is being done through various routes. As smuggling routes such as Kazakhstan and Kyrgyzstan are blocked, the routes, including Turkey, Georgia, and South Korea, are getting longer.
Smuggling luxury vehicles
Kim Jong Un is doing it too
The smuggling of luxury vehicles into Russia is not the story of a distant country. North Korea shamelessly smuggles them as if it is defying the world. Like Russia, North Korea is also under UN sanctions on the export of luxury vehicles to North Korea.
However, according to a report by an American North Korean media outlet in April 2024, as many as 19 luxury vehicles were discovered on the 92nd anniversary of the founding of the Korean People’s Army. Vehicles whose official routes into North Korea were blocked were shown at the official event. Why are people, from Russia’s high-ranking officials to North Korea’s Kim Jong Un, so obsessed with luxury vehicles?
Status Over Substance
The Allure of Forbidden Luxury
Despite international sanctions, Russia’s obsession with luxury vehicles appears driven by status and the desire to display wealth and power. In Russia, the domestic car brands—LADA, UAZ, and NAMI—are considered low-end compared to prestigious foreign brands like BMW and Mercedes-Benz. Before the war, many Russians experienced the allure of these high-end vehicles, and despite the hardships of the war years, the desire for luxury cars has resurfaced.
Similarly, North Korean leader Kim Jong Un is known for flaunting luxury cars to signal his affluent lifestyle, regardless of the global sanctions in place. The display of such vehicles serves as a powerful symbol of power and status, even in the face of international condemnation. This obsession with forbidden luxury reveals how sanctions are often circumvented, with those in power still finding ways to indulge in the status symbols of the elite.
Most Commented