BMW admits to supplying cars to Russia despite sanctions

BMW has acknowledged that it supplied cars to Russia in violation of sanctions. An internal investigation confirmed that the vehicles were imported from Hanover.

BMW stated that the employees responsible for bypassing the sanctions have been dismissed, and all deliveries to Russia have been halted. Business Insider reports that over 100 cars were delivered to Russian customers.

The European Union has placed an embargo on car deliveries to Russia, and BMW reiterated its commitment to adhering to these sanctions. However, the company has not disclosed details on how the deliveries bypassed restrictions, the models involved, or the exact number of employees implicated.

The German auto industry is grappling with significant challenges, including high labor and energy costs and declining sales in China, a key market. BMW shares have dropped by 21% in 2024.

Despite the sanctions, BMW vehicles remain popular among Russian buyers. Long supply chains and seller risks have driven up prices, yet the demand persists.

New imports of BMW and MINI models are officially banned, but Russian roads continue to see updated versions of X5, X6, X7 crossovers, as well as the latest 5-Series and 7-Series sedans.

Interestingly, some BMW models are imported directly from China. For example, long-wheelbase versions of the new X1 crossover are widely available at Russian dealerships, highlighting alternative sourcing methods despite restrictions.

BMW’s admission underscores the ongoing complexities surrounding sanctions enforcement and global trade in the auto industry.

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