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BMW admits to supplying cars to Russia despite sanctions

More than 100 premium Bavarian cars were illegally exported from Germany

Dec 23, 2024 13:30 76

BMW admits to supplying cars to Russia despite sanctions  - 1

BMW has admitted to supplying cars to Russia despite sanctions. In a statement, the automaker said an internal investigation had confirmed the fact that the cars were imported to Russia from the city of Hanover. The employees "primarily responsible" for violating the sanctions regime have been fired and deliveries have been stopped, BMW said. According to Business Insider, a total of more than 100 cars were delivered to Russian customers.

Deliveries of cars from the European Union to Russia are subject to an embargo, and BMW confirmed that it will continue to adhere to it. There are no details on how the deliveries were carried out in circumvention of sanctions; It is also not clear which models were imported to Russia, how many employees were involved in the "gray" schemes and who exactly was fired from the company.

The German auto industry is facing widespread problems due to high labor and energy costs, as well as a collapse in sales in the key Chinese market. BMW shares fell by 21 percent in 2024. Despite the sanctions, Russians continue to buy new cars from the Bavarian brand, but long supply chains and risks for the seller affect the price.

The import of new BMW and MINI models into Russia is prohibited, but the updated latest versions of the X5, X6, X7 crossovers, the current 5-Series and 7-Series sedans can be seen on the roads. Some modifications are imported directly from China: for example, the new X1 crossovers at dealers are mainly found in long-wheelbase versions.