Tens of thousands of cars are being exported from China to Russia under gray-market schemes that bypass sanctions and automakers’ commitments post-Russia’s 2022 invasion of Ukraine, according to Reuters data and interviews. The vehicles include Toyotas, Mazdas, and German luxury models, mostly made in China or shipped through there.

The practice is fueled by China’s subsidized and competitive car market, allowing traders to inflate sales figures, collect subsidies, and export surplus vehicles. Zero-mileage “used” cars are heavily discounted in China and sell for similar prices as new cars in Russia, according to dealer and shipping documents.

The Autostat data reveals that imports from China of Western or Japanese brand vehicles in Russia have significantly increased since 2023. Manufacturers from countries imposing sanctions have sold nearly 130,000 vehicles in Russia in 2025, with China-made cars accounting for almost half of them.

Efforts to block sanctioned vehicles have reduced sales to Russia drastically. However, Chinese-made German and Japanese cars are on the rise, attributed to growing exports of zero-mileage used cars. Nearly 30,000 Toyotas and almost 7,000 Mazdas were sold in Russia last year, mainly from China.

German luxury SUVs, such as Mercedes G-class, are popular among the Russian elite and are primarily imported through China. Dozens of shipping documents show examples of German luxury SUVs like Mercedes GLC 300 and BMW X1 xDrive25i being imported to Russia from China. The trade between Russia and China plays a significant role in these imports.

Read more at Yahoo Finance: Exclusive-Foreign cars flow to Russia through China, skirting Ukraine war sanctions