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.”
UK
Prince Harry expresses pride at fighting for his country and calls for veterans not to be forgotten
The Duke of Sussex has written about the privilege of serving his country ahead of Remembrance Day and appealed for people to consider former service personnel who carry the “weight of war”.
In a passionate essay, Prince Harry has warned how easy it is for veterans to be forgotten “once the uniform comes off”.
Former soldier Harry, who undertook two frontline tours to Afghanistan, has paid tribute to former servicemen and women across the UK, and describes Remembrance as “not simply a minute’s silence” but “a call to collective responsibility”.
Prince Harry at the Field of Remembrance at Westminster Abbey in 2018. Pic: Reuters
“Every November the world, for a moment, grows quieter. We pause, together, to remember.
“Remembrance has never been about glorifying war. It’s about recognising its cost: the lives changed forever and the lessons paid for, through unimaginable sacrifice. It’s also about honouring those who, knowing that cost, still choose to serve,” he wrote.
In the 647-word essay entitled The Bond, The Banter, The Bravery: What it means to be British, Harry called on people to remember “not only the fallen, but the living” who carry the “weight of war” and urged them to knock on veterans’ doors and “join them for a cuppa… or a pint” to hear their stories and “remind them their service still matters”.
He added that he was “moved” each year by Norfolk-based Scotty’s Little Soldiers charity, which supports bereaved military children.
He also praised the “resilience” of those he met in Ukraine who had been injured in the war, and described the “courage reborn, camaraderie restored” seen at his Invictus Games competition.
It is “proof that service doesn’t end when the uniform comes off”, he wrote in the piece, released as his brother Prince William prepared to hand out awards for his Earthshot Prize in Brazil.
The Duke of Sussex, pictured here with Royal Marines in 2018, has long championed the work of the armed forces. Pic: PA
While recognising he is no longer a working royal in the UK, he expressed his love of the “things that make us British”.
He wrote: “Though currently, I may live in the United States, Britain is, and always will be, the country I proudly served and fought for.
“The banter of the mess, the clubhouse, the pub, the stands ridiculous as it sounds, these are the things that make us British. I make no apology for it. I love it.”
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Harry also wrote that: “Remembrance isn’t confined to one weekend in November”.
“It’s a lifelong commitment to empathy, gratitude, and action; to be kinder, more united, and braver in protecting what those before us fought to preserve.”
New York has followed London by choosing hope over fear in electing Democrat Zohran Mamdani as its new mayor, Sir Sadiq Khan said.
Mr Mamdani, 34, defeated former New York governor Andrew Cuomo and Republican Curtis Sliwa to become the city’s first Muslim mayor and the first of South Asian heritage.
London mayor Sir Sadiq drew comparisons to his own 2016 victory as he congratulated Mr Mamdani, who will become New York’s youngest mayor in more than a century when he takes office on 1 January.
Sir Sadiq Khan. Pic: PA
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Sir Sadiq called it a “historic campaign”, adding on X: “New Yorkers faced a clear choice – between hope and fear – and just like we’ve seen in London – hope won.”
Education Secretary Bridget Phillipson also congratulated Mr Mamdani, telling Sky News: “I wish him well.
“It’s a wonderful job to have secured.”
Green Party leader Zack Polanski said Mr Mamdani’s success “will resonate throughout the world” as he called it a “story where no one is left behind”.
“It’s time to write that story across England and Wales too,” he added.
Zohran Mamdani with his wife, Rama Duwaji. Pic Reuters
Mr Mamdani’s victory was a setback for Donald Trump, who had thrown his weight behind Andrew Cuomo, a former Democrat running as an independent.
The mayor-elect described himself as “Trump’s worst nightmare” and said New York had shown “a nation betrayed by Donald Trump how to defeat him”.
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From rapper to New York mayor – Who is Zohran Mamdani?
The US president had threatened to cut federal funding to New York if Mr Mamdani won.
In his victory speech, Mr Mamdani said: “New York will remain a city of immigrants, a city built by immigrants, powered by immigrants and as of tonight, led by an immigrant.
“If anyone can show a nation betrayed by Donald Trump how to defeat him, it is the city that gave rise to him.”
Another foreign prisoner is on the run after being mistakenly released, Sky News has learnt.
The error at HMP Wandsworth in south London happened on 29 October – just five days after the high-profile release of migrant sex offender Hadush Kebatu from HMP Chelmsford in Essex.
It was also two days after Deputy Prime Minister and Justice Secretary David Lammy announced enhanced checks on prisoner releases.
Manhunt latest: Foreign prisoner on the loose
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Deported sex offender says police ignored him
The Metropolitan Police confirmed to Sky News: “Shortly after 1pm on Tuesday 4 November, the Met was informed by the Prison Service that a prisoner had been released in error from HMP Wandsworth on Wednesday 29 October.
“The prisoner is a 24-year-old Algerian man.
“Officers are carrying out urgent enquiries in an effort to locate him and return him to custody.”
Sky News understands the prisoner was serving time for trespass with an intent to steal but has previously committed sexual offences.
It is understood he is not an asylum seeker.
HMP Wandsworth in south London. Pic: PA
‘Utterly unacceptable’
It is not yet clear why it was nearly a week between the latest release at Wandsworth and the police being informed that an offender was at large.
Sir Keir Starmer was not aware of the incident until the Met Police announcement, Downing Street said.
The prime minister’s spokesman told reporters: “The Met have released a statement I think in the last few minutes.”
He said “one mistaken release is one too many” and the case was “utterly unacceptable”.
“It’s important the police are given the time and space to bring him back into custody. And we will look into the circumstances behind this as a matter of urgency,” he added.
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‘What on earth is going on within the Prison Service?’
The PM’s spokesman could not say when Mr Lammy became aware of the error, after the cabinet minister refused to answer several questions in the House of Commons on the incident from the shadow defence secretary.
Tory leader Kemi Badenoch wrote on X: “James Cartlidge asked the Deputy PM FIVE times to tell us if ANOTHER migrant sex offender had been accidentally released from prison.
“Instead of answering, Lammy lost his temper.
“Now we read it HAS happened again & he’s been on the run for a week.
“This is a shambles of a government.”
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Lammy refuses to say if more prisoners mistakenly released
Lammy ‘outraged and appalled’
Sky News understands Mr Lammy did know about the prisoner release before he stood up in the Commons and was pressed on the issue by the Conservatives.
“If we knew, one can only assume the justice secretary knew,” a spokesman for Ms Badenoch said, adding Mr Lammy should come back to the chamber “and do a statement as soon as possible”.
Mr Lammy said afterwards he was “absolutely outraged and appalled by the mistaken release of a foreign criminal wanted by the police”, adding his “officials have been working through the night to take him back to prison”.
“Victims deserve better and the public deserve answers,” he said.
It is understood Mr Lammy believed it would have been irresponsible to talk about the case – involving several agencies – while details were still emerging.
Reform UK leader Nigel Farage posted on social media: “Another dangerous criminal is on the loose thanks to Labour. What a total farce.”
The numbers of these types of errors has risen recently, with 262 instances between March 2024 and March 2025.
The Conservatives described the Kebatu episode as a “national embarrassment”.
Read more: How many prisoners are released by mistake?
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Lammy has ‘egg on his face’, former prison governor says
In the aftermath of the Kebatu manhunt, Mr Lammy promised “the strongest release checks that have ever been in place”.
He also ordered an independent investigation into the Kebatu release, which is being led by former Deputy Commissioner of the Met Police Dame Lynne Owens.
“This latest incident exposes deeper flaws across the failing criminal justice system we inherited,” Mr Lammy added in his statement on Wednesday on the HMP Wandsworth error.
“Dame Lynne Owens’ investigation will leave no stone unturned to identify these issues, so we can fix them, improve safeguards and ensure the public is properly protected.”
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Analysis: Did Lammy walk into a trap?
‘Dangerous situation’
The Liberal Democrats’ justice spokesperson Jess Brown-Fuller said: “Just when you couldn’t think things could get any worse for the Ministry of Justice, somehow they have. It would be laughable if the situation weren’t so dangerous.
“This is yet another grave mistake from the government. The public deserves a full explanation about how this has happened again. That should start with David Lammy coming back before Parliament this afternoon for why he failed to answer this pressing question in PMQs as well as a full explanation of how it took almost a week for this to come to light.
“It’s utterly unacceptable that public safety has been put at risk yet again. Both the government and the Prison Service must own up to their failures and guarantee that these mistakes will stop happening once and for all.”
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