German carmakers such as Volkswagen, BMW, Porsche, and Mercedes have increased the amount of deliveries of their cars and spare parts to Central Asian and South Caucasus countries after announcing their withdrawal from Russia, reported The Telegraph.
Data from the Institute of International Finance (IIF) show that exports of German cars and spare parts to Kyrgyzstan increased by 5,500% in the first nine months of this year compared to the same period in 2019.
The export of German auto parts to Armenia, Kazakhstan and Georgia increased by 720%, 450% and 340%, respectively. This indicates that Russia uses third countries to circumvent Western sanctions and ensure access to foreign goods, the IIF notes.
Representatives of the German Association of the Automotive Industry (VDA) report that German manufacturers are massively closing their businesses in Russia, which leads to an increase in exports to neighboring countries. At the same time, they note that the export of cars to Russia has considerably decreased.
Russia’s central bank reports that in the first six months of this year, more than $20 billion worth of goods were imported into the country under the gray scheme.
However, the supply of cars through parallel imports has become unprofitable due to logistical problems and rising prices, which has led to a decline in demand even for premium cars.