This refers to the purchase of used cars in third countries.
More and more Russians are seeking to buy cars in third countries, despite anti-Russian sanctions. According to the Financial Times, car exports from Armenia to Russia increased 200 times year-on-year to 16.3 billion rubles in January 2023.
Used car exports from Armenia to Russia have become a fast-growing trade route in the face of sanctions. Most cars arrive through the port of Poti in Georgia and are then transported to Armenia for customs clearance, as there is duty-free trade between Armenia and Russia under the Eurasian Economic Union.
According to the article, in January 2022, $2.8 million worth of used cars were imported from the U.S. to Armenia. A year later, the figure increased to $29.5 million, and in April it reached $34 million.
The publication notes that Russian consumers are increasingly making large purchases in third countries due to sanctions and the withdrawal of Western companies from the Russian market. As a result, Armenia, Turkey and Kazakhstan have found themselves at the center of a new busy trade route for consumer goods.
This trend has been a significant boost to Armenia's economy, as its GDP grew by a record 13% in 2022, more than doubling the previous year.