Ferraris to Maybachs: Russia's secret $100 million luxury car trade exposed

Written by Jeppe W

Dec.12 - 2023 8:48 AM CET

Photo: Shutterstock.com
Photo: Shutterstock.com

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Despite the stringent Western bans imposed in response to the Ukraine invasion, Russia has continued to import high-end luxury cars worth approximately $100 million, as revealed by a new investigation by Verstka Media.

Notably, this influx includes prestigious brands like Ferraris, Lamborghinis, and Maybachs, with about a thousand of these luxury vehicles entering Russian territory since the onset of the conflict.

The clandestine trade is reportedly facilitated by several dealerships in Belarus, which have established close connections with President Alexander Lukashenko.

These dealerships are exploiting the fact that while Western deliveries to Russia are restricted, those to Belarus are not. By establishing shell companies, they have effectively circumvented reexport controls, maintaining a steady flow of some of the globe's most coveted cars into Russia.

This trade network's success is in stark contrast to the ban on exports of cars valued over $54,000, which was imposed by the U.S., E.U., and U.K. almost immediately after Russia's full-scale invasion of Ukraine in March 2022.

The investigation unveils a complex web of business maneuvers that defy these international sanctions, shedding light on the persistence of luxury car demand in Russia and the ingenuity of traders in circumventing economic restrictions.

As the conflict in Ukraine continues, this investigation raises critical questions about the effectiveness of economic sanctions and the challenges in enforcing them, particularly in regions with intricate political and economic networks.

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