Mercedes-Benz U.S. International Plant located in Tuscaloosa County. Original image from Carol M. Highsmith’s America, Library of Congress collection. Digitally enhanced by rawpixel.

China Emerges as Key Hub for Foreign Cars Flowing Into Sanctioned Russia

Tens of thousands of foreign vehicles are reaching Russia via China, using gray-market channels that bypass Western sanctions imposed after Moscow’s 2022 invasion of Ukraine.

Registration data and industry interviews reveal Chinese intermediaries help Russian dealers source Toyota, Mazda and German luxury models despite official export bans.

Automakers including Mercedes-Benz, BMW and Volkswagen say they prohibit Russia sales and attempt to prevent unauthorized exports through contractual and compliance measures.

However, dealers admit sourcing vehicles through “parallel channels,” often classifying new cars as used to circumvent restrictions and avoid scrutiny.

Autostat data show nearly 130,000 vehicles from sanctioning countries were sold in Russia in 2025, with China-made models accounting for almost half.

More than 700,000 such vehicles have been sold in Russia since 2022, highlighting the scale of circumvention despite declining official exports.

Chinese-manufactured Toyotas and Mazdas dominate imports, while nearly 47,000 German-brand vehicles were registered in Russia last year.

Sanctions experts warn it is “almost impossible” to fully block indirect exports, as expanding China-Russia trade creates multiple pathways for restricted cars.

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