18 October 2024 , 19:40
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Belarussian Alexander Zaitsev, nicknamed President Aleksandr Lukashenko’s “money bag,” appears to have shipped luxury goods to Russia despite sanctions imposed by the EU in the wake of Russia’s invasion of Ukraine, according to a new investigation by The Buro, an OCCRP partner organization.
Zaitsev, once the assistant of the president’s eldest son Viktor, was himself sanctioned by the EU in 2021 and then by U.S. authorities the following year.
However, The Buro found that he is linked to a Belarus-based company called Trendhall that operates Outlet Park, an outlet store in an upmarket neighborhood of Minsk that offers branded clothing from Europe at discounted prices. These include household names such as Armani, Diesel, and Dolce&Gabbana.
Trendhall’s director, Yana Levaneuskaya, is a known associate of Zaitsev: in the past, she worked for Gaz Venture and Transpetrolbaltik. Both logistics firms are linked to the Bremino Group, owned by Zaitsev, Nikolay Vorobey, and Aliaskei Aleskin.
Flight data obtained by the Buro revealed that over the years Levaneuskaya often accompanied Vorobey, Aleskin, their families, and other senior managers from their companies on trips to Europe aboard private jets. On one trip, revealed in another Buro investigation, she flew to Basel with Aleskin’s son, Viktor Lukashenko, a state security agent, and the second secretary of the Foreign Ministry.
Commercial registry documents obtained by the investigative outlet show that Ruzekspeditsiya, a U.S.-sanctioned logistics company controlled by Zaitsev, acquired Trendhall last November.
The uncovered evidence suggests that Trendhall doesn’t just serve the local Belarussian retail market.
Outlet Hall’s Telegram channel announced new stock arrivals which included high-end items listed at prices equal or greater than those listed on manufacturers’ websites. A source told Buro that they thought that “the end consumer [must be] Russia,” given the small domestic market for such expensive goods.
While Belarus is not subject to sanctions on luxury goods, Russia faces restrictions on luxury imports following its 2022 invasion of Ukraine. In March 2022, the EU banned the sale of goods over €300 to Russia, however, the Russian government legalized parallel imports, allowing luxury items to enter the country through unofficial channels.
Buro found that Outlet Park put up a post on Russian website Dzen.ru seeking wholesalers in Russia, looking to discreetly ship luxury items and exploit the loophole in EU sanctions.
Levaneuskaya told a Buro reporter posing as a prospective Russia-based importer that Trendhall was open to shipping goods to Russia and assuring them that they’d have no problems in doing so in “volumes that won’t be noticed.” She even offered a discount on a large order of Gucci handbags, promising that “if you take them all, we can give you 10% off.”
Trendhall’s director also claimed that European suppliers “know where their products end up.” Buro reached out to European brands mentioned in Trendhall’s documents but at the time of writing, had not received a response.
The Zaitsev-linked company also allegedly procured fraudulent test reports from Kyrgyzstan, Kazakhstan, and Russia.
To import or sell goods such as clothing, footwear, or accessories, they must be certified to ensure their safety and quality. Levaneuskaya refused to provide them to the undercover reporter, despite it being a legal requirement to do so.
When Buro later obtained the documents, they were not issued by laboratories in Belarus, but rather in Kyrgyzstan, Kazakhstan, and Russia.
While permitted under the Eurasian Economic Union (EEU) customs, which includes Russia, Belarus, Armenia, Kazakhstan, and Kyrgyzstan, a source told Buro that “[Kazakh and Russian laboratories] do not shy away from engaging in shady business practices” and that “just bringing money in an envelope” was sufficient for labs in Kyrgyzstan to “register and issue everything.”
In 2023, Kyrgyz officials were caught issuing false phytosanitary certificates in exchange for bribes.
Buro openly contacted Levaneuskaya, at which point she denied that Trendhall was looking for wholesale clients. When Buro referred to the post on Dzen.ru, she backtracked and claimed that “[Trendhall is] looking for wholesale customers, but [does not] currently offer wholesale.”
She also claimed that the reason for sourcing safety certificates for their goods from other countries was a trade secret.