KATHMANDU: Thousands of foreign-brand cars are entering Russia through China despite Western sanctions imposed after the 2022 Ukraine invasion.
According to registration data reviewed by Reuters and Russia-based research firm Autostat, vehicles from brands such as Toyota, Mazda, Mercedes-Benz, BMW, and Volkswagen are being supplied to Russian buyers through indirect channels. Many of these units are either manufactured in China through joint ventures or routed via China after being built elsewhere.
Industry sources say a growing number of these vehicles are exported as “zero-mileage used” cars. In this process, brand-new vehicles are first registered as sold in China and then reclassified as used before being shipped to Russia. This method allows traders to bypass automaker restrictions on direct exports to the Russian market.
Chinese intermediaries play a key role in the supply chain. Russian dealers place orders through trading networks, which source vehicles from China. Dealers in Russia say customer demand for Western brands remains strong, even after official exits by several global automakers.
Major carmakers including Mercedes-Benz, BMW, and Volkswagen have stated that they prohibit vehicle sales to Russia and are working to prevent unauthorized exports. However, they acknowledge that monitoring parallel imports is complex and difficult to control.
Autostat data shows that imports from China now account for a significant share of Western and Japanese brand vehicles registered in Russia. The figures indicate that China has emerged as a primary transit hub for foreign cars entering the Russian market.
The trend highlights how gray-market trade continues to operate despite sanctions, driven by demand in Russia and surplus vehicle supply in China.
