LVMH defends position as Champagne shipments reach Russia, 17 January 2025

LVMH, the French luxury conglomerate behind brands such as Moët Hennessy, Christian Dior, and Bulgari, is facing criticism following reports that its champagne has entered Russia through intermediaries, despite the company suspending operations there in 2022.

Investigative outlet La Lettre revealed that Moët Hennessy worked with U.S.-based duty-free distributors, whose exports ultimately ended up in the Russian market. The company, however, has denied any wrongdoing, stressing the challenges of overseeing distribution networks globally.

“Some distributors have export activities. It is therefore impossible for Moët Hennessy to control the final destination of a product marketed by a distributor,” an LVMH spokesperson stated following questions about the report. The company emphasised that all its operations adhere to international laws and sanctions.

The luxury group ceased direct operations in Russia after the invasion of Ukraine, joining other Western brands in pulling out of the region. However, parallel imports — a legal practice allowing goods to enter Russia without direct agreements with brands — continue to ensure a steady supply of Western luxury items for Russian consumers...

The controversy highlights the difficulties luxury brands face in balancing ethical responsibilities with global distribution, as sanctions and geopolitical tensions reshape the industry landscape.