Boomtowns
Almaty, Baku and Kiev are leading the luxury charge in the former Soviet Union
It sounds like the lead-in to a simple joke: How many decades does it take for a major city of the former Soviet Union to become a global player? The answer — and it’s no joke — is just under two, judging by the trajectory of Almaty, Kazakhstan; Baku, Azerbaijan; and Kiev, Ukraine, all well on their way to becoming the next Dubai. Once the premier stop along Marco Polo’s legendary Silk Route, Almaty is the chief beneficiary of Kazakhstan’s cache of black gold — oil exports top a million barrels a day and have helped grow the economy 50 percent in the past five years. Not for nothing are high-profile jewelers like London-based Stephen Webster laying down roots. “This is a town of extremely wealthy, independent women,” says Webster, who opened stores in Almaty and Kiev (alongside neighbors such as Cartier, Van Cleef & Arpels and Boucheron) in 2008. “The clientele is looking for one-of-a-kind pieces that no one else has.”
Photo of Kiev’s Central Square
Baku’s resources also lie underground. Sitting on an estimated 31 billion barrels of oil and four trillion cubic meters of gas, the city is undergoing a Western transformation fueling desires for big-name brands and shopping destinations akin to Fifth Avenue or Ginza. In Kiev, the internal jewelry trade has been just as revitalized as the general economy. Since 2005, Ukrainian government support for small jewelry businesses has helped more than 4,300 local companies, and production is growing at 33 percent annually. But to really see the turnaround, look no further than Kiev’s sleek Arena City, a six-story shopping complex that houses more than 60 luxury brands.
Freedom to shop Kiev’s Central Square attracts youths who have grown accustomed to Western style.
