Luxury Vehicles Circulate in Russia via Kyrgyzstan Despite Sanctions

A joint investigation reveals how Berg Auto Premium in Russia circumvents international sanctions to sell luxury cars imported through Kyrgyzstan, utilizing dubious customs processes. The dealership’s operations fearlessly capitalize on a significant uptick in vehicle imports, directly attributed to the ongoing war in Ukraine. Ties to Kyrgyz political figures and the resilience of investigative journalists highlight the complexities surrounding these illicit activities.

A recent collaborative investigation has revealed a network that allows luxury vehicles to reach Russian consumers through Kyrgyzstan, circumventing international sanctions. Specifically, Berg Auto Premium, a car dealership in Moscow, offers a wide array of high-end automobiles, including brands like Tesla, Rolls-Royce, and Porsche, which are largely inaccessible in Russia due to import restrictions. The investigation was conducted by various media organizations, including Novaya Gazeta Europe and OCCRP, highlighting how these luxury cars are imported using altered customs documentation.

Despite sanctions imposed during the ongoing conflict in Ukraine, Berg Auto Premium operates a business located on the outskirts of Moscow, employing indirect methods to import luxury cars. A journalist from iStories posing as a prospective buyer was informed that they could purchase various models, with the vehicles transported from Europe to Bishkek, and subsequently delivered to Moscow. The dealership reportedly provides options for ferry transportation via Georgia as an alternative route.

Most imported luxury cars enter Russia through Kyrgyzstan, where statistical data indicate a remarkable increase in vehicle imports in 2023, totaling $2.7 billion—almost twelve times the value imported between 2019 and 2021. Investigative findings noted the entry of substantial quantities of luxury vehicles, including nearly 900 BMWs, 820 Mercedes-Benz models, and 230 Porsches, into Russia facilitated by this channel.

An anonymous customs official in Kyrgyzstan disclosed that many vehicles represented as imported often never reach the country, facilitated by remote customs clearance procedures referred to as the “Wi-Fi system.” These fictitious clearances reportedly cost between $2,000 to $3,000 and allow manufacturers to bypass customs requirements in Russia, optimizing the importation process without incurring applicable duties.

Mark Berg, also known as Benas Gutkauskas, is identified as one of the founders of Berg Auto Premium, having acquired Russian citizenship following relocation from Lithuania. Despite facing multiple criminal charges in Lithuania for various offenses, he has established a significant presence in the Russian luxury vehicle market through his dealership.

Berg Auto Premium maintains an active social media presence, notably on Instagram, where they communicate their operations in Kyrgyzstan. Contact Aziz Jyrgalbekov confirmed to investigators that they facilitate the import of European and South Korean vehicles through this national channel, emphasizing collaboration among stakeholders in the regional market.

Another individual linked to the dealership’s operations, Syrgakbek Atyshov, has showcased vehicle shipments via TikTok, suggesting connections with influential figures within Kyrgyz political circles, including associations with the family of the current president. The ongoing investigation originated from the work of journalist Bolot Temirov, who faced governmental reprisals leading to the detention of multiple colleagues, reflecting significant personal risk in exposing these activities.

This investigation sheds light on the sophisticated mechanisms bypassing international sanctions that enable luxury vehicle sales to Russian customers via Kyrgyzstan. Through dubious customs documentation processes and a network of cooperative individuals, dealerships like Berg Auto Premium circumvent restrictions to meet the demand for high-end automobiles in Russia. The case underscores the persistent challenges in regulating the flow of goods amidst geopolitical unrest.

Original Source: meduza.io

About Mason Fitzgerald

Mason Fitzgerald is a seasoned journalist and author known for his investigative reporting and in-depth feature articles. Educated at Harvard University, Mason has spent over 15 years in the field, working particularly in major metropolitan areas. His work has garnered multiple accolades, including prestigious awards for his uncovering of systemic issues in various sectors. As a former foreign correspondent, Mason brings a global perspective to his writing, blending keen insights with a narrative style that captivates his readers.

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