Since the onset of Russia's large-scale invasion of Ukraine in 2022, the European Union, the United States, Japan, and South Korea have implemented extensive sanctions that restrict car exports to Russia. Major global automobile manufacturers have committed to halting deliveries and terminating operations in the Russian market, leading to a significant drop in official sales of Western and Japanese brands within the country. However, new car registration data reviewed by Reuters indicates that foreign-brand cars are still entering Russia in large quantities, mainly via China.

The growing 'gray market' has enabled Russian dealers to purchase vehicles from Western, Japanese, and South Korean manufacturers through intermediaries in China. Many of these vehicles are produced in China in partnership with international manufacturers, while others are made in Europe but reach Russia through Chinese channels. According to methods employed by dealers, a common practice involves classifying new cars as 'zero-mileage used' vehicles to bypass restrictions and facilitate their entry into the Russian market.

This situation highlights the adaptability of Russian traders in navigating around sanctions and the persistent demand for foreign cars in Russia. It raises concerns regarding the effectiveness of international sanctions aimed at isolating Russia economically, suggesting that alternative pathways for trade are being exploited to meet consumer demand despite the geopolitical tensions that still persist between Russia and the West.