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BMW dismisses employees involved in scheme to illegally deliver cars to Russia

by Abbey Fenbert December 23, 2024 6:38 AM 2 min read
A vehicle on display at the BMW Welt multi-use exhibition center in Munich, Germany, on July 21, 2024. (Andrea Ronchini/NurPhoto via Getty Images)
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The German automaker BMW on Dec. 22 announced that it had uncovered irregularites in car exports from its Hanover branch to Russia and subsequently dismissed employees who were involved.

The announcement confirms a report from the news outlet Business Insider, said that over 100 luxury cars had been delivered to Russian buyers despite ongoing sanctions.

BMW discovered irregularities that allowed cars to be transferred to Russia from its Hanover branch, the company said in a statement, as reported by Deutsche Welle. The automaker has since suspended sales of the vehicles.

"In addition, the BMW Group has decided to dismiss the employees who bear the greatest responsibility for this," the company said.

The U.S. and the E.U. banned the export of high-end automobiles to Russia in March 2022, in the aftermath of Russia's full-scale invasion of Ukraine. Cars from Europe have nonetheless continued to enter Russia through a variety of schemes to circumvent the ban.

Russia's luxury car imports fell sharply after sanctions were first imposed, but shipments resumed in 2023, largely via intermediaries in third-party countries.

BMW is taking steps to prevent illegal exports of its products to Russia via third parties and to fully comply with international sanctions, the company said.

Carmaker forecasts 30% collapse in Russian car market by 2025
Sales of new cars and light commercial vehicles in Russia could decline by 21-30% in 2025 if high interest rates persist, Avtovaz CEO Maxim Sokolov said on Nov. 19, according to the state-owned TASS news agency.

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