Super-rich Russian shoppers face spending limits in UK store: report
In the latest fallout from the Russia-Ukraine crisis, some super-wealthy Russian shoppers known to enjoy shopping for high-end luxury goods at famed central London’s Harrods store were given a spending limit, according to a media report Sunday.
The Knightsbridge department store has contacted Russian customers warning them that it will no longer sell them luxury goods worth more than £300, according to The Telegraph. The outlet says the move is to comply with a series of sanctions imposed by the British government in retaliation for the conflict between Russia and Ukraine.
As you may know, British authorities have introduced new regulations as part of their ongoing sanctions against Russia that specifically target the sale of luxury goods, the newspaper quoted an email sent to a wealthy Russian .
The regulations aim to prohibit the supply of many categories of luxury goods above certain values (usually GBP 300) to people who are currently or usually in Russia, it says.
The email would include a link to the new regulations and encourage the customer to review them.
The email is further quoted as saying: To comply with these regulations, Harrods has been required to review its customer information to identify customers that it believes (by reference to country or phone number information that provided to us) may currently or habitually reside in Russia.
Based on this information, we have identified you as a person who may currently or usually reside in Russia. If this is the case, it means that you are subject to the regulations and that we will not be able to provide you with any luxury goods subject to restriction.
Since the invasion, the British government claims to have sanctioned or designated over 1,000 Russian individuals and 100 entities, including oligarchs with an aggregate net worth of over £117 billion.
The sanctions cover an asset freeze that prevents any UK citizen or business in the UK from dealing with funds or economic resources that are owned, held or controlled by the designated person.
In March, shortly after the start of the Russian-Ukrainian conflict, the United Kingdom banned exports of high-end luxury goods to Russia and imposed new import tariffs on key Russian products. The UK government had also appealed to all UK-based companies to think very carefully about any investment in Russia amid the ongoing Ukraine conflict.
To ensure that we adhere to these restrictions, we have reviewed our database to identify potentially affected customers and have asked them to notify Harrods if the information we hold is not accurate and up-to-date. This was not based on nationality, but on address/contact details or delivery data from previous transactions, Harrods said in a statement.
Our priority is to comply with the regulations, to inform potentially affected customers of how this may limit their ability to shop at Harrods and to ensure that wider customers are not unduly affected. We are pleased that we were able to take this step and help inform customers of recent government regulations, the statement said.