When Russia invaded Ukraine in February 2022, hundreds of Western companies pledged to leave the Russian market in protest. Among them were Germany’s luxury car giants—Mercedes-Benz, BMW, and Audi—each promising to halt operations in Russia. Yet, nearly three years later, their withdrawal strategies reveal a stark contrast between public statements and on-the-ground realities. While Mercedes, Audi, and BMW publicly condemned Russia’s aggression, their approaches to disengagement have varied widely, reflecting differing priorities and interpretations of sanctions.

Mercedes-Benz initially declared it would suspend exports and local manufacturing in Russia as of March 2022. By October, the company announced plans to sell its Russian assets, a move finalized in April 2023. This included offloading its Moscow assembly plant, local distributor, and financial subsidiaries to Avtodom Automobile Holding.

Though Mercedes no longer officially operates in Russia, parallel imports—where goods are brought in via third countries without the manufacturer’s consent—have allowed new Mercedes vehicles to enter the market. Remarkably, Mercedes’s former Russian distributor, MB RUS, continues selling new cars and even offers warranties on parallel imports.

Mercedes has taken steps to restrict access to its proprietary software for maintenance and diagnostics, complicating service for Russian customers. However, workarounds, such as downloading software for offline use or spoofing geolocations, have minimized the impact. Despite Mercedes’s efforts to audit its authorized partners, the continued presence of its vehicles in Russia underlines the limitations of such strategies.

Audi, part of the Volkswagen Group, took a slightly different path. The company ceased direct car sales and production in Russia early in 2022, and by 2023, Volkswagen sold off its Russian subsidiaries for €125 million. Audi also disconnected former dealers from its software and limited spare parts shipments, ensuring each case complied with EU sanctions.

Despite these measures, Audi cars remain available in Russia, often through parallel imports. Former official dealers continue to sell both new and used models, a practice Audi insists is beyond its control. While Audi’s public stance aligns with its withdrawal pledge, the lingering availability of its vehicles suggests an incomplete severance.

Among the three automakers, BMW’s approach stands out as the most ambiguous. Although BMW halted vehicle exports and assembly operations in Russia, it has maintained a significant local presence. The company expanded spare parts supply lines and warehouse operations in 2023, ensuring continued support for Russian dealers.

While BMW’s public statements suggest a commitment to withdrawal, its active Russian website tells a different story. The site regularly advertises new models, lists authorized dealers, and facilitates sales of both new and used vehicles. Dealers report that BMW has provided access to proprietary databases, enabling them to bypass software restrictions. This duality—publicly scaling back while privately maintaining operations—has allowed BMW to retain a foothold in the market, raising questions about its commitment to sanctions compliance.

A common thread across all three automakers is the reliance on parallel imports to sustain the flow of vehicles into Russia. While Mercedes and Audi have taken more decisive steps to distance themselves from these channels, BMW’s ongoing collaboration with dealers suggests a more permissive approach.

The contrast between public declarations and private actions highlights the delicate balancing act these companies face. On one hand, they must adhere to sanctions and maintain their reputations in Western markets; on the other, the lucrative Russian market remains hard to abandon entirely.