Surge in sale of UK-made cars to Russia’s neighbours shows how it’s beating sanctions
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 car 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.”
Oleksandr Usyk has become the undisputed heavyweight champion of the world after defeating Tyson Fury in boxing’s biggest fight of the century.
The Ukrainian won on a split decision following the match in Saudi Arabia.
Usyk had 115-112 and 114-113 on two cards, while Fury took the other 114-113.
Oleksandr Usyk lands a punch on Tyson Fury. Pic: PA
Fury disputed his loss after the match, saying: “I believe I won that fight. I believe he won a few rounds but I won more of them.
“Make no mistake I won that fight and I’ll be back.”
In response Usyk said he was “ready for a rematch”.
Pic: Action Images via Reuters
Fury came under early pressure, with Usyk taking the centre of the ring with an aggressive offensive from the start.
At one point Fury was pushed against the ropes and started laughing as Usyk applied pressure.
The “Gypsy King” looked relaxed as he moved around the ring in the early rounds and picked his shots.
Pic: PA
Fury lunges at Usyk. Pic: PA
But after Usyk landed a right hook in the ninth round it looked as if Fury was in serious trouble. The Ukrainian followed up by unloading freely but somehow the bookmakers’ favourite stayed on his feet and was saved by the bell.
Last night, Fury weighed in at 262lbs (18st 10lbs) – nearly three stone heavier than Usyk, who clocked in at a career heaviest of 223lbs (15st 13lbs).
Fury refused to look at his opponent during a news conference on Thursday, but did not back down at the weigh-in last night, where the pair almost came to blows before being separated by their entourages.
Usyk arrived into the ring first, dressed as a Cossack warrior.
Fury entered to songs by Barry White and Bonnie Tyler, with the “Gypsy King” spending several minutes dancing on stage before the song changed to Holding Out For A Hero.
Anthony Joshua watched from the ringside, knowing he could meet the winner early next year.
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UK
Brixham: Warning ‘heads are going to roll’ after water parasite outbreak – as ‘nearly every house in one close has someone ill’
Thousands of homes have had their boiling water restrictions lifted after a water tank infected with cryptosporidium was drained and cleaned, South West Water has said.
About 16,000 households in the Brixham area of Devon were told to boil their drinking water following 46 confirmed cases of the disease.
On Saturday afternoon South West Water lifted the boiling restrictions for 14,500 homes after water quality monitoring results found no traces of cryptosporidium in the Alston supply area.
Cryptosporidiosis is caused by a tiny parasite and can lead to vomiting, stomach cramps and watery diarrhoea lasting about two weeks.
More cases are expected to be confirmed due to a delay in developing symptoms – and about 100 more people around Brixham were reporting signs of it on Friday.
South West Water believes the parasite probably entered supplies through a damaged pipe in a field containing animal faeces.
A contaminated water tank at Hillhead reservoir, where cryptosporidium was detected, was drained overnight and “thoroughly cleaned” on Saturday, South West Water said.
One local resident said she knew of only four houses out of 21 in Raddicombe Close, on the outskirts of Brixham, which have not had at least one person fall ill with cryptosporidiosis.
The local MP has warned “heads are going to roll” over the incident.
Tory MP Anthony Mangnall, whose constituency includes Brixham, told LBC: “This is such a serious matter that yes, I think heads are going to roll over this.”
He claimed the supplier had been too slow to issue its safety alert.
16,000 businesses and residents are affected by the boil water notice. Pic: South West Water
Mr Mangnall said: “From starting this week with a denial from South West Water that it was anything to do with them, delaying the fact that the boil water notice came in – meaning thousands of people used the water network – to then issuing it on Wednesday, and there are a lot of people who are very ill.”
He called it an “absolutely disastrous week” and said locals were furious.
South West Water has said it’s “deeply sorry” and that it’s been “working tirelessly” to identify the source of the problem and fix it.
Bottled water stations have been set up in the area.
Read more:
What we know about parasite found in drinking water
Parasite outbreak has ‘destroyed’ business
Liberal Democrat leader Sir Ed Davey accused the government of not doing enough to hold water companies to account.
He told Sky News the firms were “putting profit over the environment, over public health” after multiple cases of sewage being released into rivers and seas.
“We [Liberal Democrats] wouldn’t wait for fines for pollution,” Sir Ed said.
“There should be a sewage tax on the profits of these water companies so we can get the money now.
“There needs to be much tougher regulation… and we may need to look at restructuring the whole water industry.”
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Kelly Holmes joins anti-sewage protest
It comes as dozens of protests over sewage releases were planned for Saturday.
Surfers Against Sewage is promoting “paddle-out” demonstrations at 30 locations, with Olympian Dame Kelly Holmes among those at the event in Brighton.
The confirmed cases of a waterborne disease caused by a parasite have more than doubled.
There are now 46 confirmed cases of cryptosporidiosis, a diarrhoeal illness, the UK Health Security Agency (UKHSA) has said – with more than 100 further people reporting similar symptoms in the Brixham area.
Other reported cases of diarrhoea and vomiting in residents and visitors to the south Devon town are also under investigation. Hundreds of locals have also reported feeling unwell over the last two weeks on social media.
MPs and South West Water officials have confirmed the parasite most likely entered water supplies through animal faeces, but an investigation is still ongoing.
What is cryptosporidiosis disease?
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‘Cow faeces’ infected Devon water
The UKHSA first confirmed cases of the disease at around midday on Wednesday, while locals were initially told by South West Water that their tap water was uncontaminated and safe to drink.
But after testing supplies in the Hillhead reservoir, the water company found “small traces” of the parasite cryptosporidium – which causes cryptosporidiosis – and told residents in parts of Brixham and Alston to boil their drinking water on Wednesday.
A total of 16,000 households and businesses in Brixham, Boohay, Kingswear, Roseland and North West Paignton were impacted and offered £15 compensation at first.
Over the next two days, South West Water apologised to those affected and increased the offer to £115. Amid the chaos, one primary school closed its doors on Thursday due to not having safe running drinking water.
16,000 businesses and residents are affected by the boil water notice. Pic: South West Water
‘Very hard questions for water company’
Speaking to Sky News yesterday, South West Water’s chief customer officer Laura Flowerdew confirmed it was likely a broken air valve contaminated by animal faeces that had caused the outbreak.
However, she refused to give a timeframe on how long the incident would be ongoing – leaving thousands of residents facing an uncertain future.
Speaking on Friday at the University of Exeter, Health Secretary Victoria Atkins said there will be “very, very hard questions” for South West Water over the outbreak.
“At the moment I think we probably need to give them the space to conduct their investigation; we know that they have identified the source,” she said.
“The public will want to know how on earth that source happened, what was the chain of events that led to this, because of course we all understand the expectation that we all have when we turn our taps on is that [we get] clean drinking water and we want to be able to trust it.”
Read more on Sky News:
Teacher guilty of sexual activity with a child
Teen had cardiac arrest after ‘spicy chip challenge’
Tom Brady vows to be ‘better parent’ after roast
Most cases of cryptosporidiosis pass in two weeks. Symptoms include diarrhoea and vomiting. File pic: Dr_Microbe/iStock
‘Expect to see more cases’
Totnes MP Anthony Mangnall also warned the boil notice could last “at least a further six or seven days” and called for more transparency.
Professor Paul Hunter, a specialist in medical microbiology at the University of East Anglia, told Sky News if the parasite was “a continuous thing” present in water supplies for a prolonged period, then “you’d expect to see more cases” for another two weeks.
It comes as hotel owners in the area told Sky News the outbreak has led to people cancelling their stay, while a head chef said “I can’t wash salad in the sink”.
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‘Destroyed our business’
Stephen Colemansfield, owner of Redlands Guest House in Brixham, told Sky News the outbreak has “destroyed our business at the moment”.
“Our guests have cancelled because of the mixed messages that are being sent out by South West Water.”
Rob, head chef at the Steam Packet Inn in Kingswear near Dartmouth, also said his brother-in-law is one of the 46 confirmed cases of cryptosporidiosis and has been sick for two weeks.
The UKHSA is working with Torbay Council, South West Water, NHS Devon and the Environment Agency on the incident.
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