China being used to bypass sanctions on foreign cars in Russia, report suggests

Russia’s car market is continuing to receive tens of thousands of foreign-brand vehicles via China despite sanctions imposed after Moscow’s full-scale invasion of Ukraine in 2022, a journalistic investigation has found.

Traders are using a system of parallel imports, often involving China, to bring vehicles into Russia without direct approval from automakers.

Dealers are reclassifying new cars as “zero‑mileage used vehicles” in China, allowing them to be imported under existing regulations. In Russia, these vehicles are sold at prices comparable to brand‑new cars.

Dmitry Zazulin, sales director at Panavto-Zapad dealership, told Reuters that parallel imports are currently the main route for customers seeking Western brands such as Mercedes-Benz.

Data from Russian research firm Autostat show that nearly half of the roughly 130,000 foreign-brand vehicles registered in Russia in 2025 arrived through China, and that total sales of these vehicles since 2022 have exceeded 700,000.

Challenges to enforcement 

Brands including Toyota, Mazda, Mercedes-Benz, BMW and Volkswagen have stated they do not export vehicles to Russia and are not involved in parallel imports.

Analysts note that the parallel import mechanism, introduced in Russia in 2022, allows goods from brands that have exited the market to be imported legally without the consent of trademark holders. While this system helps maintain supply, enforcement remains complex.

Some recent measures, including tighter border controls and import regulations, have reduced volumes of such imports, although significant numbers of foreign-brand vehicles continue to reach the Russian market.

Industry observers say the continued flow of vehicles illustrates the practical challenges of enforcing sanctions across international trade networks. China is the primary conduit for these imports, although other routes may also be used.

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The scale of the trade underscores the ongoing demand in Russia for Western and Japanese automotive brands, despite restrictions and corporate exit from the market.

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