Tens of thousands of vehicles are being shipped from China to Russia through gray-market channels that bypass Western and Asian sanctions as well as automakers’ pledges to leave the Russian market, according to Reuters-reviewed registration data and industry interviews.
The sanctions and company pledges came in reaction to Russia’s 2022 invasion of Ukraine. But a thriving trade in these vehicles – from Toyotas and Mazdas to German luxury models – continues partly through informal networks enabling Russian dealers to order them through Chinese intermediaries, the interviews and data from Russian research firm Autostat show.
How it works
Most are made in China – where many international brands build vehicles with local partners – or are shipped through there after being manufactured elsewhere, according to the data and sources. A growing number are zero-mileage “used” vehicles – new cars registered as sold in China by dealers or traders, who then reclassify them as used and export them.
The practice reflects China’s highly subsidized, hypercompetitive car market, allowing automakers and dealers to inflate sales figures, collect subsidies and export surplus vehicles. Traders classify new cars as used to avoid needing automaker approval for Russia sales.
Zero-mileage used cars are often heavily discounted in China. But in Russia, they fetch prices similar to never-registered new cars, according to a Russian dealer and vehicle-shipping documents reviewed by Reuters.
Mercedes-Benz, BMW, Volkswagen and other automakers from regions imposing sanctions said they prohibit sales to Russia and are doing their best to prevent unauthorized exports, including through training and contractual clauses with dealers.
Data Reveals Scale Of Trade
Autostat data shows China is now the primary conduit for foreign vehicles entering Russia. Nearly 130,000 vehicles from sanctioning countries were sold in Russia in 2025, with China-made units accounting for almost half.
Sales of Chinese-made Japanese and German cars are rising. Nearly 30,000 Toyotas and about 7,000 Mazdas were sold last year, most China-made, while German luxury models continue flowing through gray channels.
Analysts say many Europe-built vehicles pass through China before reaching Russia, underscoring deepening automotive trade links despite sanctions.
(With inputs from Reuters)
