BMW admits ‘irregularities’ with 100 Russian car sales despite sanctions

BMW has acknowledged that more than 100 of its high-end vehicles were sold to Russian customers, breaching international sanctions imposed after the Kremlin’s invasion of Ukraine.

The German carmaker attributed the sales to a handful of rogue employees at its Hanover branch, who have since been dismissed.

BMW, along with other major German manufacturers like Volkswagen, Porsche and Mercedes, halted direct exports to Russia in early 2022. However, the incident underscores how Western goods are still reaching the Russian market, often via so-called “back door” routes that circumvent sanctions.

Although trade volumes between Germany and Russia have plummeted since the restrictions were introduced, there has been a significant uptick in exports to former Soviet states such as Kyrgyzstan, Kazakhstan, Armenia and Georgia—countries not themselves subject to sanctions. The Institute for International Finance points to a 5,500 per cent jump in German car exports to Kyrgyzstan and sharp increases for Kazakhstan, Armenia and Georgia, noting how reported figures often fail to match local import records, indicating “phantom destination” shipments.

A BMW spokesman said the group has now stopped any pending deliveries following the “irregularities” uncovered by its internal controls. “In recent months, the products of various companies have been available for purchase in Russia even though the companies themselves have acted in accordance with all the applicable sanctions. Usually, this is the result of ‘grey market’ imports. The BMW Group has a range of measures in place to prevent such imports.”

The spokesman added that, while it continues to comply with the embargo, some staff had knowingly facilitated unauthorised sales. “Further deliveries of vehicles ordered have now been halted, and the decision was taken to dismiss the main employees responsible,” he said.

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BMW admits ‘irregularities’ with 100 Russian car sales despite sanctions