Foreign cars reach Russia through China as gray market schemes bypass global sanctions

Thousands of foreign cars reach Russia via China through gray-market schemes. Traders reclassify new vehicles as used to bypass sanctions and exit pledges.

Insights:
Tens of thousands of foreign-brand cars are being exported from China CNCN to Russia RURU through gray-market schemes that often circumvent Western and Asian sanctions as well as automakers' commitments to exit the Russian market. According to registration data from Autostat and interviews with dealers, these flows have become a substantial share of foreign-brand vehicle registrations in Russia. This ongoing activity matters because the scale of these exports reduces the effectiveness of sanctions and limits the ability of automakers to control where their vehicles are sold.
The trade has risen to a large scale since the response to the 2022 invasion of Ukraine UAUA. Autostat registration data show that more than 700,000 vehicles from affected foreign brands have been sold in Russia since early 2022. In 2025, China-made vehicles accounted for nearly half of the approximately 130,000 vehicles from sanctioning-region automakers registered in Russia. The timing of this growth follows post-2022 sanctions and automaker exit pledges, indicating a structural channel that undermines those measures.

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