What recession? When the going gets tough, Russia's rich go shopping

By Ilya Khrennikov, Andrey Lemeshko and Corinne Gretler
Updated February 5 2016 - 2:13pm, first published 1:42pm
Spending big: Corporate lawyer Yaroslav Gafurov spent some $1.4 million on new cars last year. Photo:  Andrey Rudakov
Spending big: Corporate lawyer Yaroslav Gafurov spent some $1.4 million on new cars last year. Photo: Andrey Rudakov
Customers try on luxury brand shoes in the TsUM department store in Moscow.  Photo: Andrey Rudakov
Customers try on luxury brand shoes in the TsUM department store in Moscow. Photo: Andrey Rudakov

With the recession heading into its second year, most Russians are cutting back. Not Yaroslav Gafurov. The 25-year-old Muscovite said now is the perfect time to stock up on his favourite toys -- luxury cars and expensive watches.

He spent the ruble equivalent of about $US1 million ($1.4 million) on new autos in the last year, snapping up a $US250,000 Rolls-Royce and a pair of Bentleys, one of which is still on order, as well as a top-of-the-line Mercedes and BMW, he said. Another €70,000 ($109,000) went for watches, he said.

"The crisis hasn't affected my daily consumption or my vacation habits at all," said Gafurov. He said his corporate-law practice has taken off as the pain of the economic crisis has deepened for Russian companies.

Conspicuous consumers like Gafurov helped some luxury brands report their best-ever results in Russia in 2015, even as overall retail sales dropped 10 per cent. About half of Russians can barely afford purchases beyond food and other basics, according to national polls.

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