How UK-made cars are finding their way to Russia’s showrooms
British carmakers appear to have continued selling hundreds of millions of pounds of luxury vehicles to Russia even after the invasion of Ukraine and the imposition of sanctions, exporting the cars indirectly via former Soviet states, Sky News analysis suggests.
While direct British car exports to Russia have fallen to zero following the invasion of Ukraine in 2022, that collapse has been followed by a corresponding increase in car exports to countries neighbouring Russia, most notably Azerbaijan.
Our analysis, based on official HMRC trade data, finds that the UK exported £273m of vehicles to Azerbaijan last year, a 1,860% increase compared with the five-year period preceding the invasion.
Not only is the increase in exports to Azerbaijan unprecedented, it is of a similar magnitude to the annual car exports to Russia in the two years before the imposition of sanctions, which averaged £330m.
Alongside the UK HMRC statistics, Sky News has analysed UN international trade data which shows that over precisely the same period that Britain recorded an unprecedented increase in car exports to Azerbaijan, Azerbaijan recorded an unprecedented increase in car exports to Russia.
The data chimes with testimony from Sky sources, who told us that while Russian car buyers sourcing German vehicles have primarily sent them via Kyrgyzstan, they prefer to use Azerbaijan as a route for British cars.
British carmakers insist that they are no longer selling cars to Russia. And the government data, collected by the HMRC on all goods leaving the country, do not constitute proof that the cars ended up in Russia. It is impossible to track each British consignment once it has left port, especially once it has arrived at a third country.
However, the government is concerned about this grey area, whereby goods may be sent to Russia via former Soviet satellite states in the Caucasus and central Asia.
A Moscow showroom showing at least one model for sale.
Cars are among the items banned from Russia under the so-called “dual use” sanctions regime. There is a specific ban of the sale of luxury cars – those worth more than £42,000 – to Russia.
The HMRC database, which also shows the count of cars sold as well as the total value, reveals that the average value of UK cars exported to Azerbaijan was more than £100,000 – suggesting that the consignments are primarily or exclusively luxury cars.
Britain’s motoring lobby group the SMMT said: “UK vehicle manufacturers are committed to full compliance with all current and future trade sanctions.
“While trade flows can vary and, indeed, be quite volatile with growing economies, there is no available evidence to indicate a lack of compliance with existing sanctions, but manufacturers will remain vigilant, and would condemn any party that puts their commitment to compliance at risk.”
Sanctions experts said part of the challenge in combating the flow of goods to Russia via third countries (as appears to be happening in this case) is that it is very difficult, sometimes near impossible, to track those consignments once they enter those other countries.
Portbury in Bristol is one of the UK’s main ports to handle the import and export of motor vehicles.
Tom Keatinge, Director at the Centre for Financial Crime & Security Studies, Royal United Services Institute says: “There are obviously very close economic ties between places like Azerbaijan, Armenia and Russia, they sit within a kind of common economic area. And so really, once the good is in that area, your ability to track it as the manufacturer in the UK is lost.
“What you should of course, be asking yourself, when it comes to exporting that car, or whatever it might be initially is, ‘Do I really think that this exporter who’s suddenly come out of nowhere to buy 100 cars Is actually importing cars only into that third country? Or might they be trying to make money out of circumventing sanctions and selling that onward into Russia?'”
Rolls-Royce, which is owned by BMW, said: “Rolls-Royce Motor Cars ceased production and supply of cars for the Russian market in late February 2022, before international trade sanctions were put in place. In the meantime, governments have implemented far-reaching sanctions, which we fully comply with and support.
“Retail sales of cars to clients are managed by our global dealer network, comprised of independently owned and operated businesses. Our global dealer network is contractually obliged to follow all applicable national and international legal regulations, including those relating to export control.
“If any new Rolls-Royce motor car has been imported into Russia since late February 2022 this has been done so without the knowledge or support of Rolls-Royce Motor Cars.”
A 2023 Bentley car is shown for sale on a Russian franchise dealership’s website.
Pic: Bentley Moscow
A representative from Bentley, owned by VW, said: “We are committed to full compliance with all current and future trade sanctions and there is no evidence to suggest a lack of compliance with existing sanctions, or indeed a change of sales trend in Azerbaijan.”
While the HMRC data does not identify specific carmakers or consignments, it does show that the port most used for this particular trade from the UK was the Port of Bristol, which had never previously exported more than a few million pounds worth of goods each year to Azerbaijan. In the two years following the invasion it saw those exports shoot up to more than £100m a year. The Port of Bristol did not respond to Sky News’s requests for a comment.
For the UK as a whole, the dramatic rise in car exports to Azerbaijan stands out in the trade statistics. In the space of a couple of years, this state of 10 million people, with a GDP around the same size as Ghana, has become the UK car industry’s 16th biggest export destination by value, ahead of Austria, Portugal and Sweden.
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Feb: Is Russia beating UK sanctions?
Sky News has previously shown that many other banned items, including those known to have been repurposed as weapons, have been sent to former Soviet states in the Caucasus and Central Asia, including Kyrgyzstan and Armenia. Those states have all recorded sharp increases in their exports to Russia.
Britain’s sanctions minister Anne-Marie Trevelyan said: “The work of investigative journalists and NGOs’ continuing efforts to highlight circumvention are an important part of our collective efforts to track and evidence Putin’s abhorrent crimes.
“We have introduced the largest and most severe package of sanctions ever imposed on Russia or indeed any major economy with 2,000 individuals and entities under the Russia regime. Alongside our international allies we’ve been clear no country should be propping up Russia’s war machine.
“We continue to bear down on those who do business with Putin and his cronies, including sanctioning individuals who try to bypass our sanctions, and working with partners and a range of third countries to stem the flow of goods into Russia.”
It “cuts my heart” and is a “betrayal”.
This was the response of a Ukrainian soldier in a frontline combat regiment directly affected by Donald Trump’s decision to pause US military support to Ukraine.
Serhii, 45, maintains a unit of US-supplied Bradley infantry fighting vehicles that are defending an area of eastern Ukraine from attacking Russian forces.
The halt to American military aid – if sustained – means there will be no new ammunition and no ability to repair any of the vehicles when they are damaged – a constant risk.
Ukraine war latest: Follow live updates
On a recent mission by the 425th Storming Regiment “Skala”, three Bradleys went into battle towards the direction of the city of Pokrovsk, an area of heavy clashes.
Only two returned after the other was hit by the Russian side.
Troops said it would be for Ukraine to defend their land without US military support
“It’s going to be very hard,” Serhii said, standing next to a large Bradley, covered by a camouflage net and tucked under a line of trees in the Donetsk region.
“These vehicles are really good. You can fight back with them. And not just defend, you can even advance. It’s a shame we didn’t have this equipment two or three years ago.”
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Trump pauses military aid to Ukraine – what now?
The regiment has been using Bradleys for a number of months. Serhii is the lead mechanic.
The tracked vehicles, armed with a chain gun that can fire 200 rounds per minute, were first developed in the 1980s but have been fitted with modern reactive armour that means they can survive drone strikes, rocket attacks and the shrapnel from artillery rounds.
“The vehicle’s protection… is fantastic,” Serhii said, with clear admiration for the equipment compared with Soviet-era fighting vehicles that many Ukrainian troops have to use.
Soliders said the Bradley infantry vehicles are good for advancing, not just defence
He said the crew of one of his Bradleys was hit by two rocket-propelled grenades but was able to continue driving and was unharmed.
Serhii, who comes from the Donetsk region, said he felt betrayed by Mr Trump’s decision to halt such crucial support.
The US president ordered the move as he attempts to put pressure on Ukrainian President Volodymyr Zelenskyy to negotiate a ceasefire deal with Russia.
“Although I’m not a politician, it’s a betrayal for us, for the guys who are defending Ukraine,” the soldier said.
Inside a US-supplied Bradley vehicle
Asked how he felt when he heard the news about the US president’s decision, Serhii said: “The latest news cuts my heart, I can answer you that way. It cuts my heart… If politicians solve issues this way, just by halting weapons supply in one move, that’s criminal.”
He signalled it would be harder for Ukrainian troops to defend their land without the US military support – but they would still fight.
“Even without this weapon, we believe we will move forward,” he said.
“They [the Russians] have to retreat, no matter what. The guys didn’t take up arms here for nothing, and they stand together. Together, all of us, as one, will defeat this enemy.”
As for whether he had a message for Mr Trump, the soldier said: “Don’t stop military aid. Politics is politics, but the people, I believe, are the most important.
“It will be very hard for us without such equipment. This equipment is good; it allows us to show results. And we will keep showing them. We’ve shown them before and we will keep showing them. That’s how it is. Thank you.”
Fighting ‘for my motherland’
Soldier Sedoi said he is ‘tired’ of the war
Sky News watched as two crews prepared their fighting vehicles for a potential mission on Thursday evening.
Sedoi, 41, commands one of the Bradleys and operates the gun.
He said the American-supplied vehicle gives him confidence when he goes into battle – and was also likely a scary prospect for Russian troops to have to encounter.
“We make a lot of noise. Everything catches fire and burns… It’s a good vehicle,” he said.
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Will Kyiv fall without US support?
Sedoi said he did not have a reaction to the news about the halt to American military support, saying: “I don’t get involved in their politics.”
However, he signalled he did want an end to the war – even if it meant Russia keeping some of the land it has seized.
“Let it end, so people stop dying. Because a lot of people have died,” he said.
Read more:
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Russia ‘appears to have ignored Trump warning’
Recently recovered from a shrapnel wound, Sedoi said he volunteered to fight after Vladimir Putin launched his full-scale war more than three years ago because of Russia’s brutality.
“I’ve heard what they do when they enter villages, what they do with children and women… I don’t want them to go any further… That’s why I’m here.
“But, to be honest, I’m getting tired of it.”
Yet still he and his fellow soldiers battle on. Asked why he was fighting, the soldier said: “For my motherland.”
A warning by Donald Trump to Vladimir Putin to stop “pounding” Ukraine or else, appears to have fallen on deaf ears after another night of devastating Russian strikes.
The persistent pummelling of Ukrainian towns and cities also follows a decision by the US president to stop sharing American intelligence and weapons with Kyiv – a move that is directly hampering the Ukrainian military’s ability to defend their skies from the Russian onslaught.
In the deadliest attack overnight, at least 11 people were killed and 30 wounded, including five children, in the town of Dobropillia, about 15 miles from the frontline in the Donestsk region of eastern Ukraine.
Ukraine war latest: Follow live updates
The Ukrainian police service said a Russian ballistic missile, rockets and attack drones hit eight multi-storey buildings as well as a shopping centre and dozens of cars.
Firefighters work at the site of the strike. Pic: Reuters/State Emergency Service of Ukraine
Pic: Reuters/State Emergency Service of Ukraine
“Some buildings were burnt down almost completely,” the national police of Ukraine said in a post on its Telegram social media channel.
Another three civilians were killed and seven injured in a drone attack on the Kharkiv region in the northeast of the country, according to a separate post by the interior ministry.
Just hours earlier, the US president posted a warning to the Kremlin on social media.
“Based on the fact that Russia is absolutely ‘pounding’ Ukraine on the battlefield right now, I am strongly considering large-scale banking sanctions, sanctions, and tariffs on Russia until a cease fire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED,” he wrote.
“To Russia and Ukraine, get to the table right now, before it is too late. Thank you!!!”
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Trump: ‘Ukraine difficult to deal with’
Kyiv will be watching closely to see whether Moscow’s continuing attacks will prompt Mr Trump to carry out his threat.
Ukrainian President Volodymyr Zelenskyy has been in crisis mode ever since Mr Trump returned to office and started attacking his record on the war, falsely calling him a dictator and even claiming – again erroneously – that Ukraine was to blame for Russia’s invasion.
Sky News on the ground in Dobropillia 24hrs before strike
A Sky News team was in Dobropillia 24 hours before the attack – stopping off to grab food at a pizza restaurant that was close to the site of at least two of the incoming strikes.
The restaurant is on a road of shops, including a clothes store and a small grocery outlet.
The town, which used to be home to 28,000 residents before Russia’s full-scale war, feels far more battle-hardened than areas further away from the frontline.
Fighting has been raging for months between invading Russian forces and Ukrainian troops, just over a dozen miles away, around the city of Pokrovsk.
Despite the closeness of the war, however, many civilians, including children, still live in Dobropillia.
In the most significant blow, Washington has paused the sharing on intelligence with its Ukrainian partners, instantly making it far harder for Ukraine to have a clear picture on the movement of Russian forces and weapons, while also hampering the ability of the Ukrainian armed forces to effectively conduct targeting attacks against Russian positions.
Read more:
The most significant part of Zelenskyy’s olive branch to Trump
Would the world be more peaceful if women were in charge?
A decision to stop the flow of military support to Ukraine will also have a huge impact on the country’s ability to keep defending itself.
The US has been Kyiv’s largest and most important supplier of arms, including the Patriot air defence system – the only piece of equipment in Ukraine’s arsenal that has the ability to take down ballistic missiles.
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