Russian Smugglers Bypass EU Sanctions, Transporting Luxury Cars Through New Routes

Russian smugglers are reportedly charging fees to transport luxury vehicles from Europe to Russia, bypassing EU sanctions designed to target Moscow’s wealthier elite, a Financial Times investigation revealed on December 30.

An investigation identified five Russian companies offering to illegally import vehicles restricted under the EU’s 2022 luxury goods export ban. Among the listings was a BMW 530 d M Sport advertised by Russian importer AvtoImport for $68,200 (₽7,200,000) on the Auto.ru platform. However, the same vehicle was still for sale for $33,350 (₽3,623,450) on the German dealership Autopartner BGL’s website as of mid-December.

“The ads running in Russia have nothing to do with us,” confirmed a representative of Autopartner BGL, stating that the car remained unsold in Germany.

The FT uncovered over 50 luxury cars listed on the Russian platform by importers, originating from 25 German dealerships, with an average markup of $19,900 (€19,000).

Smugglers reportedly claim the cars are destined for third countries before rerouting them to Russia. For instance, a black Mercedes-Benz S350 sold by Germany’s Kessler & Haag to a Kyrgyz cab company in January 2024 was later registered with a Moscow taxi operator in March.

“We have a buyer, a payer, an exporter, and export documents. What else should we do?” commented Artur Kessler of Kessler & Haag, emphasizing the company’s compliance with regulations.

To bypass tightened sanctions, smugglers are increasingly using complex and costly routes through Turkey, Georgia, and South Korea rather than the now heavily monitored Belarusian corridor.

Baltic customs officials confirmed a decline in suspicious car exports since Belarus sanctions were updated but acknowledged that some vehicles still reach Russia via Central Asian countries like Kyrgyzstan and Kazakhstan.

EU officials are aware of the ongoing smuggling but have prioritized preventing sanctions evasion on goods with military applications.

Earlier, reports emerged that Russians are bypassing Western sanctions on luxury goods by leveraging personal shoppers, resellers, and smuggling networks to maintain their access to high-end European fashion.