From Yerevan to Moscow, the business of branded clothes

Many Russian citizens buy in Armenia – and resell in Russia – what cannot be found at home because of sanctions

On February 24, 2022, the world was shocked by news of the start of the Russian invasion of Ukraine, a conflict that has already claimed tens of thousands of lives on both sides and resulted in Europe's largest refugee crisis since World War II world.

Following the invasion the United States, the European Union, and other Western countries imposed new sanctions and expanded existing ones. These include a ban on a number of Russian banks from using the SWIFT international payment system, which triggered a financial crisis in Russia and a massive international boycott.

On December 9, 2022, Canada imposed new sanctions against Russia for human rights violations. The decision includes sanctions against 33 current or former senior Russian officials and six entities involved in alleged "systematic human rights violations" against Russian citizens who protested Russia's invasion of Ukraine.

Step by step, the major international brands of clothing, household appliances, and food products have started to leave the country.

"I came to Yerevan for the first time at the end of 2022. The first purchase I made was Coca-Cola, at the airport, I really missed its taste", says Lena, 25, who recently moved to Yerevan from Moscow.

"In December I came here to spend a holiday, I met my friends who had moved here before and I realised that it was possible to start a new phase of my life by moving to Armenia", she says.

Lena is a stylist by profession, she found a job in Armenia, but she also started to get involved in the retail trade.

"I help my acquaintances in Moscow to buy branded clothes and shoes. For example, if someone wants an item that is not available in Russia, I buy it here in Armenia and sometimes from neighbouring Georgia and ship it to Moscow. My service is not free, obviously the percentage I keep is minimal, but I earn a certain amount that allows me to pay the rent on my house here", says Lena.

Lena herself points out how many other compatriots earn a living like this. According to her, the number of Russian citizens moving to Armenia, shopping in Yerevan, and delivering to Russia is growing. There are several delivery services in Armenia today. On average, the fastest deliver items anywhere in Russia within a week directly to the indicated address. The service costs around 20 Euros to ship one kg of goods. Lena does not complain about the rate though, she says it is not bad for her business.

"I mostly deliver clothes – a lot of things fit in a kg. Furthermore, it is also safe to deliver this way. The parcels are transported quickly and without damage and delivered directly to the customer's home. It is definitely worth paying a little more, but leave the customer satisfied".

Unlike Lena, 40-year-old Igor – who has lived in Armenia for a year – prefers to deliver to Russia in vehicles carrying passengers. He says that even though the order may arrive later, it is cheaper.

"I have a personal agreement, I cannot talk about prices, but I am satisfied. I ship coffee and vitamins. They are heavy goods, I cannot afford air freight, otherwise I would not make any money", he says. Nevertheless, Igor points out, every time he has to make an air delivery there is a queue: “There are at least 2-3 people in line. I am not saying that everyone does business, earns money, no, but many people buy branded items from Armenia and send gifts to their relatives living there. You know, when I was a child, I remember that Armenians came to live and work in our country and bought gifts from us to take to Armenia, saying that this and that was not there in Armenia. Times have changed now, we come to Armenia to work and buy different things, because they are not available in Russia”, he observes with a laugh.

In general, according to the Ministry of Economy of Armenia, the net resettlement of Russian citizens in Armenia in the last year amounted to 108-110,000 people: that is, many Russians moved to Armenia and stayed there permanently.

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