The recent geopolitical landscape has asserted unexpected influences on various markets, including the luxury automotive sector. Following Russia’s invasion of Ukraine in early 2022, many global brands, including BMW, declared their withdrawal from the Russian market. This decision led to the cessation of new vehicle sales and the halt of production at their former partner facilities in Kaliningrad. Surprisingly, despite these sanctions, the new BMW X5 is already available for pre-order in Russia, marking a significant deviation from the brand’s official stance.
Prices Skyrocket: The New BMW X5
In Germany, the new BMW X5 starts at approximately €99,750 for the 40i xDrive version, while the diesel variant is priced at €95,750. In stark contrast, Russian dealers are reportedly anticipating prices ranging from 16 to 17 million rubles, translating to about €179,000 to €190,000 at the current exchange rates. This reflects nearly double the cost in Germany, a steep price hike driven by numerous factors.
Factors influencing these inflated prices include increased procurement costs from Europe, rising logistics expenses, and Russia’s utilization fee, which is determined based on engine capacity. Moreover, dealers speculate that initial vehicles in Europe could also come with price premiums, further complicating the pricing landscape.
BMW’s Clear Stance on Sanctions
In previous statements, BMW has unequivocally distanced itself from such deliveries, emphasizing its support for international sanctions. A representative confirmed to a Berlin newspaper that vehicles reaching Russia via so-called parallel imports are “outside our sphere of influence—and expressly against our will.” To prevent violations of export and sanction regulations, BMW has implemented additional control mechanisms globally, mandating strict adherence to international export laws among its partners.
Despite BMW’s withdrawal, the new X5 is expected to be available in Russia through parallel imports from third countries, where independent dealers procure vehicles abroad and import them without the manufacturer’s direct involvement. This circumvention raises questions about the effectiveness of sanctions in the luxury segment.
BMW: A Symbol of Status in Russia
Even amidst the official exodus of Western brands, BMW continues to hold significant status in the Russian market as one of the leading premium brands. By autumn 2025, BMW regained its position at the forefront of the premium segment, primarily attributed to these parallel imports. Remarkably, the number of BMW vehicles sold surpassed that of competing Chinese luxury brands like Exeed and Tank, highlighting the enduring appeal of the brand.
Russian dealers anticipate substantial demand for the new X5, citing its high value retention as a “secure investment.” Even if the model faces challenges in the market, its resale value on the Russian second-hand market remains promising, making it an attractive option for affluent consumers.
The availability of the new BMW X5 exemplifies the limitations of Western sanctions in the luxury sector. Officially, BMW has not sold vehicles in Russia for over four years, yet wealthy Russian buyers still have access to new German luxury cars through alternative import pathways—albeit at nearly double the typical prices. This situation underscores the complex dynamics of geopolitics and global commerce, especially in the high-end market.
