China-to-Russia Auto Flows Amid Sanctions: BMW, Mercedes, Volkswagens Circumvent Bans

China is channeling tens of thousands of new and zero-mileage used vehicles to Russia through gray-market networks, sharply countering Western automakers’ bans and sales restrictions following the 2022 Ukraine invasion. Registration data and dealer interviews show Chinese intermediaries and informal dealer channels enable Russian importers to acquire Western and Asian brands, including via reclassification of new cars as used to bypass approvals. Autostat data indicates China-made or China-passed foreign vehicles now account for nearly half of all restricted-brand registrations in Russia in 2025, with over 700,000 such vehicles sold since 2022. German luxury SUVs, including the Mercedes G-class, GLC 300, and BMW X1, are among the most sought-after. Automakers such as Mercedes, BMW, Volkswagen, Toyota, and Mazda prohibit sales to Russia and report violations are “time-consuming and complex” to trace, yet the flow continues through third-party middlemen. Auto sales in Russia have fallen from over 1 million in 2021 to about 120,000 this year, while Chinese-made German and Japanese cars are rising. China and Russia both maintain they oppose unilateral sanctions and consider them illegal.