Foreign-brand cars continue to reach Russia in substantial numbers despite sanctions, official export restrictions and the withdrawal of many global automakers following Russia’s invasion of Ukraine in February 2022. China has become a central link in this trade, serving both as a manufacturing base for international brands and as a transit point for vehicles routed through independent dealers and trading companies.
Registration data cited in reporting on the trade shows that nearly 130,000 vehicles made by automakers based in countries that imposed restrictions on Russia were sold there during 2025. Since early 2022, more than 700,000 vehicles from those foreign brands have reportedly entered the Russian market.
These sales do not usually pass through the manufacturers’ former official Russian networks. Instead, the vehicles move through parallel-import channels involving independent dealers, logistics companies, brokers and intermediaries operating across several jurisdictions.
Why China has become a major supply route
China plays two distinct roles in the system. Many international automakers manufacture vehicles in the country through joint ventures or local production agreements, which means a car built in China may still carry a Japanese, German or other foreign badge.
China also functions as a commercial staging point for vehicles produced elsewhere. Cars can be purchased by trading companies, registered locally, resold and then shipped to Russia through private import networks. Multiple transactions and changes in documentation can make the original route difficult to trace.
Toyota and Mazda illustrate the importance of China-based manufacturing. Russian buyers purchased nearly 30,000 Toyota vehicles in 2025, with almost 24,000 produced in China. Nearly 7,000 Mazda vehicles were also sold, with most reportedly coming from Chinese factories.
Hybrid models have attracted particular attention because they offer lower fuel consumption while preserving the familiarity and perceived quality associated with established global brands. Their availability is significant in a market where official model choices narrowed after many manufacturers suspended Russian operations.
How “zero-mileage used” vehicles enter the market
One important part of the trade involves so-called zero-mileage used cars. These are new vehicles that are registered once in China before being exported and classified as used, even though they may have travelled little or no meaningful distance.
The classification can change the documentation and approval requirements applied to the vehicle. It may also allow exporters to move inventory through channels that differ from a manufacturer’s authorised new-car distribution system.
China’s intensely competitive car market can make these transactions financially attractive. Dealers may discount vehicles because of excess inventory, sales targets or pressure from competing brands. Traders can then resell those cars in Russia at prices closer to those of officially new vehicles, creating room for logistics costs and profit.
Luxury brands reveal the scale of the parallel market
The unofficial supply chain is particularly visible in the premium segment. Nearly 47,000 new vehicles from BMW, Mercedes-Benz and Volkswagen Group brands—including Audi, Porsche and Skoda—were reportedly registered in Russia during 2025.
More than 20,000 of those vehicles were manufactured in China. Other cars were produced in Europe but appear to have travelled through China before reaching Russian buyers. Reported shipping records included models such as the Mercedes-Benz GLC 300 and BMW X1.
The Mercedes-Benz G-Class demonstrates why enforcement becomes complicated. The luxury sport utility vehicle is manufactured in Austria and can cost around €120,000, depending on the version and market. Even when a vehicle begins its journey in Europe, independent companies can move it through several countries before it reaches Russia.
Automakers face limits beyond official dealerships
Major automakers say they prohibit unauthorised sales to Russia and use dealer contracts, compliance checks and export restrictions to reduce the risk of diversion. Those measures are easier to apply within official dealership networks than across a chain of unrelated resellers.
A manufacturer may sell a vehicle legally to a distributor or customer in one country, only for it to be resold later by another company. Establishing who knew the car’s eventual destination can require access to contracts, shipping records, customs declarations and payment information held in different jurisdictions.
This does not mean every transaction violates sanctions. Rules differ by country and may depend on a vehicle’s price, engine size, powertrain or final destination. However, multi-stage routes can make enforcement slower and create opportunities for traders to exploit differences between national regulations.
What the trade means for sanctions enforcement
Russia’s car market shows the difference between stopping official sales and eliminating supply altogether. Corporate withdrawals reduced direct access to authorised dealerships, factory warranties and official servicing, but they did not remove consumer demand for Toyota, BMW, Mercedes-Benz and other established brands.
Parallel imports can also create practical risks for buyers. Vehicles may have specifications intended for another country, software or navigation systems that are not fully supported in Russia, uncertain warranty protection and limited access to authorised replacement parts.
The wider lesson extends beyond the automotive industry. When demand remains strong and price differences are large enough, intermediaries have an incentive to build new routes, change classifications and divide transactions among several companies. Similar pressures can affect electronics, machinery and other restricted goods.
More context on how international restrictions influence supply chains, prices and cross-border commerce can be found in this overview of global trade and market developments.
Detailed registration figures, company responses and shipping examples were reported by Reuters in its investigation of foreign-car shipments through China.
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