Due to sanctions and the mass extermination of mink in Denmark, fur manufacturers in Russia faced a shortage of raw materials, rising prices for it, and subsequently with a reduction in the range. It is reported by RBC with reference to Russian companies producing clothes from natural fur.
The chairman of the board of directors of the Snow Queen, Vugar Isaev, told the publication that the company has reduced 30% of stores that sell mink fur coats. These are approximately 38 small format stores out of 128 outlets.
Mr. Isaev explained this by the fact that against the background of the liquidation of Danish fur farms during the coronavirus pandemic, the supply of raw materials decreased. Because of this, prices for it rose by about 50-100%. Another reason for reducing the range, he called the termination of the preferential consumer lending program, when buyers could purchase a mink coat without a down payment in installments for up to 36 months.
The owner of the MaryBelle fur factory, Yulia Denisova, confirmed to RBC that fur raw materials are becoming less accessible. “We can buy skins, but it is problematic to import auction fur due to broken logistics,” she said. According to Ms. Denisova, the wholesale price of fur coats increased by about 30% year-on-year.
The Russian Fur company told the publication that the problems for it arose mainly not because of the sanctions, but because one of the large fur auctions refuses to work with Russian companies, and the other cannot offer the necessary products due to the consequences of the pandemic. The manufacturer noted that there are still stocks, but what will happen next year is unknown.
Western countries banned the import of fur products to Russia as part of an embargo on the supply of luxury goods and a ban on the export of undressed skins from Russia to the EU countries. These restrictions are described in the fourth and eighth EU sanctions against Russia and in the list of the Bureau of Industry and Security under the US Department of Commerce.