Russian investigative journalism outlet Agentstvo reported this week that luxury cars are being imported into Russia via Estonia from the European Union. By analyzing data from Import Genius, which compiles customs declarations, the outlet found that between November 2022 and April 2021, at least 142 cars and six motorcycles were transported to Russia. In total, they were worth more than €18 million.

The vehicles were sent to Russia by two companies: the Estonia-registered Dzallair and the Hong Kong-based Ningbo Industries Company Limited (NICL). According to Agentstvo, the Estonian company was the main supplier in this scheme.

Dzallair's financial reports show the business only began to flourish after the war started. Revenue was €114,000 in 2021, rising to €4.35 million in 2022, and reaching €16.73 million in the last quarter of 2024. The company's latest annual financial report has not been submitted on time.

Hannes Umborg, head of the customs procedures department at the MTA, told ERR cars are subject to EU-imposed sanctions. Exporting vehicles directly to Russia is banned.

However, the MTA has encountered various schemes used by companies and individuals attempting to bypass sanctions.

"For example, in the past, when luxury car restrictions applied, MTA customs officials detected cases where the actual value of a vehicle was deliberately concealed to prevent it from qualifying as a sanctioned luxury car," Umborg recalled, referring to the former €50,000 value threshold. "Today, cars are subject to a general ban, except for certain exemptions related to engine power and other specifications, meaning the restriction no longer depends on the car's price."

Umborg said there have also been cases were individuals tried to cross the border with a personal vehicle, that, on closer inspection, turned out to be for resale.

Enforcing sanctions is the MTA's top priority in customs operations, he added.

"The work of MTA customs officials and the customs inspections they conduct are internationally recognized as among the strictest in the European Union," Umborg said.

The agency monitors and restricts the import, export, or transit of goods in accordance with applicable laws and EU sanctions lists.

He said the MTA works with the Ministry of Foreign Affairs to highlight potential loopholes in sanction regulations. It has submitted proposals to the European Commission for tightening and clarification.

"For instance, we have supported eliminating the €50,000 vehicle price cap in favor of a general ban, proposed expanding transit restrictions on Russia, advocated for banning Russian fuel imports even for storage purposes, highlighted risks in the timber sector, and suggested prohibiting the use of Russian wood in final products," the tax authority representative listed.

The MTA also cooperates with other countries' customs and law enforcement authorities, Umborg said. He said preventing sanctions evasion requires all EU member states to enforce the rules uniformly.

"Unfortunately, when all customs declarations and documents appear formally correct, it is difficult for customs officials to prevent the free movement of goods. However, we conduct follow-up checks to verify whether a vehicle has reached its declared destination. If it turns out that the vehicle was actually sent to Russia, we will ban future exports," the official explained.

Vehicles were marked for Baku and Minsk

According to Agentstvo, the first shipments through Estonia traced via Import Genius took place at the end of 2022, when six Ducati motorcycles and a Mercedes-Benz SL 63 AMG 4MATIC+ convertible were transported to Russia.

The publication also contacted Dzellair's owner. Although the company was founded by Sultan Serikbaev from Kazakhstan, its current owner and director is now his relative, Diana Serikbajeva, who resides in Tallinn.

When asked by an Agentstvo journalist about vehicle deliveries to Russia, Diana Serikbajeva responded that the claim was not true and ended the call. A few hours later, the journalist received a phone call from a hidden number. The caller identified himself as Serikbajeva's husband and inquired about the journalist's identity, what had prompted their interest in this business, and how they had obtained information about the car shipments to Russia. However, he did not comment on the subject itself.

Agentstvo reported that several customs declarations listed Moscow as the destination for the vehicles, while others mentioned Minsk or Baku. However, in reality, the cars reached Russia. This is evidenced by the list of recipients —vehicles supposedly intended for Baku and Minsk were actually assigned to Avtodom Group structures. Furthermore, Agentstvo managed to locate 16 of these vehicles in advertisements on various Avtodom-related websites across different Russian regions.

The remaining 37 vehicles — four Lamborghini Urus SUVs and 33 Mercedes-Benz cars — also ended up in Russia, but Import Genius database records do not reveal their recipients. Based on a sales listing, Agentstvo determined six of these vehicles were sold through the MB Rus dealership.

Avtodom, a company specializing in luxury car sales, has been operating since 1992. According to Forbes, by the end of 2023, it ranked fourth among all car dealerships in Russia in terms of revenue. Avtodom's communications director, Anna Utkina, told Agentstvo that they would not comment on the matter.

After Russia launched its full-scale invasion of Ukraine in 2022, the EU imposed an export ban on cars to Russia. This has sparked the use of complex routes to bring vehicles into the country. In December 2023, media reports described a scheme where luxury cars were sent to Russia via Poland and Belarus. Over 30 companies in Belarus were involved. At that time, Avtodom was also one of the recipients of these vehicles.

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