Brand new luxury British and European cars are entering Russia despite being banned – here’s how
The Caucasus Mountain range in Georgia is one of the great sights in the south of Europe. Towering peaks, higher than any in the Alps, rise up from green meadows and grassy hills covered in wildflowers. Winding roads thread through deep valleys, overlooked by ornate Orthodox churches and monasteries.
But when I visited recently, I found a sight of an unexpected kind. The roads here have become dominated by a very particular kind of traffic: enormous convoys of trucks, carrying all manner of goods towards Georgia’s northerly neighbour: Russia. When I travelled north towards the checkpoint of Lars – the only road into Russia – I encountered a long queue of trucks waiting to clear customs and pass across.
I had come here in search of an answer to a puzzle that’s been preoccupying me for some time. It began with a chart. This chart showed that after Russia invaded Ukraine and sanctions were imposed by G7 nations, including the UK, the flows of certain goods to that country suddenly cratered, falling to zero. That went for the so-called “dual use goods” you could use to create a makeshift weapon or put into a drone, but also for the luxury goods banned from sale into Russia.
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The theory back then was that by starving Russia’s war machine of the parts it needed and by starving senior Russian businesspeople and officials of the Western luxuries they coveted, European states could cause economic damage even if they weren’t directly at war with Vladimir Putin’s state.
But the data told a subtly different story. While exports of those goods to Russia certainly fell to zero, they suddenly rose sharply to a host of Russia’s neighbours. All of a sudden, Britain was sending drone equipment to Kyrgyzstan; all of a sudden, we were exporting luxury cars to Azerbaijan, in numbers we had never come anywhere close to before. Things got odder when you looked at Azerbaijan’s own export data, which showed a sudden spurt in its own luxury car exports (it does not manufacture luxury cars), to other countries in the Caucasus and Central Asia, including Georgia and Kazakhstan.
This posed a bit of a mystery. While sanctions experts said they suspected these Caucasus states were almost certainly being used as a kind of conduit, to send sanctioned goods to Russia, the data trail went cold when those cars entered the Caucasus. When we first raised this earlier in the year, Britain’s motor lobby group, the Society of Motor Manufacturers and Traders (SMMT), said: “UK vehicle exports to Azerbaijan – as to many countries globally – have increased due to a number of factors, not least a flourishing economy, new model launches and pent-up demand.”
The implication, in other words, was that most if not all the cars stayed in the Caucasus (which would be entirely legal) instead of crossing into Russia (which would not).
A Porsche seen by Sky News near the border
Like the driveway of a Mayfair hotel
All of which is how I found myself in the Caucasus mountains recently to see for myself whether this story really stacked up. We had gone there following a tip-off. A colleague in Georgia had sent us a photo from the border checkpoint, where a set of informal car parks was filled with the kind of concentration of luxury cars you would normally only expect to see outside a Mayfair hotel, or in a country like Dubai. There were Mercedes, high-end Lexus, BMWs and, there among a large number of German cars, two Range Rovers.
So we travelled out to Georgia to find out whether there were really UK-made cars still travelling into Russia. Now in some respects, our focus on cars might seem odd: after all, there are far more egregious breaches of the sanctions regime. Our previous investigation found radar parts and electrical equipment have also been sent from the UK to the Caucasus and Central Asia following the imposition of sanctions.
A Lamborghini and two Mercedes G-wagons
But the reason we were focused on cars is that while there’s no way of telling from the outside what’s inside a cargo truck or a shipping container, vehicles are far harder to move secretly. In short, if we could show that European, and for that matter British cars were being moved into Russia, then it would demonstrate visually, for the first time, how these sanctions are being broken.
We spent two days close to the border, watching the process as cars and other trucks were brought there, and then sent over into Russia. We spoke to numerous men engaged in the trade. What we discovered was a complex but finely-honed system designed to transport European cars into Russia.
A Mercedes seen by Sky News
‘This car will go to Russia and will remain there’
One group of men is charged with bringing the cars to the border – sometimes from showrooms in the capital, Tbilisi, sometimes from the Black Sea ports of Poti or Batumi. Mostly they don’t know where the cars come from beforehand – whether directly from countries like the UK or via other Caucasus states like Azerbaijan.
Once they bring the cars to the border, they leave them there in a set of car parks where they sit for a few days until the necessary paperwork is completed. That paperwork is not without its own complications: after European states imposed sanctions, Georgia introduced its own bans on sending cars into Russia. However, there are numerous loopholes that enable you to bring the cars across nonetheless.
A Porsche waits at the car park
One way is to have the cars registered and custom cleared in Armenia before they come up north to the Lars checkpoint in Russia. Sometimes those taking the cars into Russia are advised to say they are only being driven through Russia to Kyrgyzstan but, as one Russian YouTuber puts it: “Let’s be honest: everyone understands everything perfectly well – everyone from the people who will register you at the traffic police and the people at the Georgian border – that this car will go to Russia and will remain there.”
Either way, eventually these cars are issued with transit registration plates, after which they can be driven over the border. And since Georgians can travel visa-free into Russia, and vice versa, taking the cars across the border is simply a question of driving them there, leaving the car on the other side where it will be collected by another group of men, and then hitching a ride back into Georgia.
Checkpoint at the Georgia-Russia border
Everyone wins – except the Ukrainians
We saw numerous cars being taken across the border in this way, and here’s the key thing about this system: first, no single person in the chain can easily be fingered for any crime – even though, when you put it all together, it certainly amounts to a contravention of sanctions law. Second, and just as importantly for our purposes, it means that the cars don’t show up in the customs data. From the point of view of a statistician, they simply arrive in Azerbaijan or Georgia and then they disappear.
This, we learnt, was only one of numerous routes sanctioned goods are taking into Russia, but such routes are, all told, a large part of the explanation for how Mr Putin is able to keep his regime equipped with the components it needs to wage war, and the luxuries needed to reward his cronies. The upshot is contrary to the promises when these sanctions were imposed: Russia’s economy remains strong, there are no shortages of essential and non-essential goods in Moscow and, along the way, Caucasus states like Georgia and Azerbaijan have seen an enormous economic boost from serving as an informal trade conduit. Everyone wins – except the Ukrainians.
Traffic waiting to cross from Georgia into Russia
But while we saw this process carried out at the border for many German cars – Mercedes and Porsches were the most prevalent brands – we didn’t find the Range Rovers our contact had photographed a few days earlier. They were, presumably, already over the border.
So after a few days we headed south towards Tbilisi to talk to more people in the export trade. But just outside the Georgian capital, we suddenly spotted a convoy of trucks heading in the opposite direction. Among those trucks were two car carriers with what looked like brand new Range Rovers. We turned the car around and began to follow them up the mountain, realising that we were witnessing this shadow trade route in person.
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April: British cars going to the Caucasus
Up until then there had been no clear filmed evidence that British cars are actually leaving the Caucasus for Russia. So we followed the car carriers as they travelled slowly up the mountain roads towards the border.
When we arrived at the border, the atmosphere in the car park had transformed. What had been a quiet place during the day was a hive of activity. Clearly this was peak time – it seemed that most of the car deliveries happened in the dead of night. Not only were there two Range Rovers, there were countless other luxury cars, including top of the range Mercedes G-Wagons and a Lamborghini Urus.
When day broke the next morning, we checked the VIN numbers on the Range Rovers – the numerical fingerprint displayed on the windscreen, allowing you to trace these vehicles. They showed that these cars were brand new, made in Solihull in 2024. A document visible on the windscreen of one of them showed the date of April 2024.
Boxes inside one of the cars
No one is trying to hide what’s happening
Those dates were significant: we at Sky News had warned CAT logistics groups about the existence of this trade in March 2024. Jaguar Land Rover (JLR) and the SMMT had been aware of the risks posed by these vehicles ending up in the Caucasus before these cars had been manufactured. Yet here they still were, en route to Russia, joining the line to cross over the border.
A spokesperson for JLR said: “JLR stopped sales of vehicles to Russia and Belarus in February 2022. Sanctions compliance is a corporate priority, as well as an obligation for our third-party retail network.
“An ongoing investigation into these vehicles has confirmed they were not supplied by JLR to the Georgia market. They were supplied by JLR to retailers in countries that do not share a border with Russia and then in turn sold to customers in those countries, which are subject to similar sanctions and export controls as we are in the UK in relation to Russia.
Makeshift car park full of luxury cars, including Range Rovers, near the border
“JLR, along with its retailer network, continues to adapt its compliance strategies to counter the efforts of third parties seeking to circumvent sanctions against Russia and Belarus.”
An HMG spokesperson said:
“The UK has banned the export of thousands of goods to Russia, including cars. Over £20bn of UK trade with Russia is now under sanctions and we will continue to ratchet up economic pressure until it ends its brutal invasion of Ukraine.
“We are also working with UK businesses and exporters to ensure sanctioned goods are not supplied to Russia, and we expect them to continue to check their compliance with relevant UK sanctions.”
However, while UK carmakers and authorities insist they are doing everything they can to clamp down on these unofficial trade routes, perhaps the most startling takeaway from our investigation is that there on the ground in Georgia, no one is trying to hide what’s happening. Everyone knows these high-end European cars aren’t supposed to be going into Russia, yet they are passing over the border one by one, every day. Everyone knows what’s happening, but no one is doing anything to stop it.
And one has to presume much the same thing is happening with all types of goods, including those inside the bowels of the trucks lined up at the border. The passage of these cars is only the most visible evidence that the sanctions regime is not preventing expensive, important items travelling from Europe into Russia. For the time being, policymakers and businesses seem powerless or unwilling to prevent this murky trade.
World
Two security workers injured after grenades thrown at aid site, Gaza Humanitarian Foundation says
Two American security workers in Gaza were injured after grenades were thrown during food distribution in Khan Younis, the Gaza Humanitarian Foundation (GHF) has said.
In a statement, the US and Israeli-backed aid group said a targeted terrorist attack was carried out at one of its sites in southern Gaza on Saturday morning.
The two Americans injured “are receiving medical treatment and are in stable condition,” it said, adding that the delivery of aid was “otherwise successful” and that “no local aid workers or civilians were harmed”.
GHF didn’t say exactly when the incident happened but claimed Hamas was behind the attack, adding: “GHF has repeatedly warned of credible threats from Hamas, including explicit plans to target American personnel, Palestinian aid workers, and the civilians who rely on our sites for food.
“Today’s attack tragically affirms those warnings.”
Later, the aid group posted a picture on social media, which it said showed “fragments of a grenade packed with ball bearings” that was used in the attack.
Asked by Sky’s US partner network, NBC News, whether the two injured individuals were responsible for handing out aid or were responsible for providing security, GHF said they were “American security workers” and “two American veterans.”
The aid group did not provide specific evidence that Hamas was behind the attack.
The US and Israeli-backed group has been primarily responsible for aid distribution since Israel lifted its 11-week blockade of the Gaza Strip in May.
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Listen to The World with Richard Engel and Yalda Hakim every Wednesday
It comes after Sky News analysis showed GHF aid distributions are associated with a significant increase in deaths in Gaza.
According to Gaza’s health ministry, 600 Palestinians have been killed while seeking aid from GHF sites as of 3 July, which charities and the UN have branded “death traps”.
Meanwhile, the Associated Press has reported that Israeli-backed American contractors guarding GHF aid centres in Gaza are using live ammunition and stun grenades.
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Contractors allege colleagues ‘fired on Palestinians’
GHF has vehemently denied the accusations, adding that it investigated AP’s allegations and found them to be “categorically false”.
Israel’s military added that it fires only warning shots and is investigating reports of civilian harm.
It denies deliberately shooting at any innocent civilians and says it’s examining how to reduce “friction with the population” in the areas surrounding the distribution centres.
Hamas has said it has “submitted its positive response” to the latest proposal for a ceasefire in Gaza to mediators.
The proposal for a 60-day ceasefire was presented by US President Donald Trump, who has been pushing hard for a deal to end the fighting in Gaza, with Israeli Prime Minister Benjamin Netanyahu set to visit the White House next week to discuss a deal.
Mr Trump said Israel had agreed to his proposed ceasefire terms, and he urged Hamas to accept the deal as well.
Hamas’ “positive” response to the proposal had slightly different wording on three issues around humanitarian aid, the status of the Israeli Defence Forces inside Gaza and the language around guarantees beyond the 60-day ceasefire, a source with knowledge of the negotiations revealed.
But the source told Sky News: “Things are looking good.”
A woman cries after her son was killed while on his way to an aid distribution centre. Pic: AP/Jehad Alshrafi
Hamas said it is “fully prepared to immediately enter into a round of negotiations regarding the mechanism for implementing this framework” without elaborating on what needed to be worked out in the proposal’s implementation.
The US said during the ceasefire it would “work with all parties to end the war”.
A Hamas official said on condition of anonymity that the truce could start as early as next week.
An Israeli army tank advances in the Gaza Strip, as seen from southern Israel. Pic: AP/Leo Correa
But he added that talks were needed first to establish how many Palestinian prisoners would be released in return for each freed Israeli hostage and to specify the amount of humanitarian aid that will be allowed to enter Gaza during the ceasefire.
He said negotiations on a permanent ceasefire and the full withdrawal of Israeli troops from Gaza in return for the release of the remaining hostages would start on the first day of the truce.
Hamas has been seeking guarantees that the 60-day ceasefire would lead to a total end to the nearly 21-month-old war, which caused previous rounds of negotiations to fail as Mr Netanyahu has insisted that Israel would continue fighting in Gaza to ensure the destruction of Hamas.
The Hamas official said that Mr Trump has guaranteed that the ceasefire will extend beyond 60 days if necessary to reach a peace deal, but there is no confirmation from the US of such a guarantee.
Speaking to journalists on Air Force One, Mr Trump welcomed Hamas’s “positive spirit” to the proposal, adding that there could be a ceasefire deal by next week.
Palestinians dispersing away from tear gas fired at an aid distribution site in Gaza. Pic: AP
A girl mourns the loss of her father, who was killed while heading to an aid distribution hub. Pic: AP/Jehad Alshrafi
Hamas also said it wants more aid to flow through the United Nations and other humanitarian agencies, which comes as the UN human rights officer said it recorded 613 Palestinians killed in Gaza within a month while trying to obtain aid.
Most of them were said to have been killed while trying to reach food distribution points by the controversial US- and Israeli-backed Gaza Humanitarian Foundation (GHF).
The spokeswoman for the UN human rights office, Ravina Shamdasani, said the agency was not able to attribute responsibility for the killings, but added that “it is clear that the Israeli military has shelled and shot at Palestinians trying to reach the distribution points” operated by GHF.
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Palestinians carry aid packages near the GHF distribution centre in Khan Younis. Pic: AP/Abdel Kareem Hana
Ms Shamdasani said that of the total tallied, 509 killings were “GHF-related”, meaning at or near its distribution sites.
The GHF accused the UN of taking its casualty figures “directly from the Hamas-controlled Gaza health ministry” and of trying “to falsely smear our effort”, which echoed statements to Sky News by the executive director of GHF, Johnnie Moore.
Mr Moore called the UN figures a “disinformation campaign” that is “meant to shut down our efforts” in the Gaza Strip.
Behind the efforts to secure the Gaza ceasefire and hostage release is the remarkable story of one man’s unlikely involvement.
His name is Bishara Bahbah, he’s a Harvard-educated economics professor from Phoenix, Arizona.
In April, his phone rang. It was Hamas.
Since that phone call, Dr Bahbah has been living temporarily in Qatar where he is in direct contact with officials from Hamas. He has emerged as an important back-channel American negotiator. But how?
An inauguration party
I first met Dr Bahbah in January. It was the eve of President Trump’s inauguration and a group of Arab-Americans had thrown a party at a swanky restaurant in Washington DC’s Wharf district.
There was a sense of excitement. Arab-Americans were crediting themselves for having helped Trump over the line in the key swing state of Michigan.
Dr Bahbah negotiating with Hamas for the release of Edan Alexander
Despite traditionally being aligned with the Democrats, Arab-Americans had abandoned Joe Biden in large numbers because of his handling of the Gaza war.
I’d reported from Michigan weeks earlier and been struck by the overwhelming support for Trump. The vibe essentially was ‘it can’t get any worse – we may as well give Trump a shot’.
Mingling among diplomats from Middle Eastern countries, wealthy business owners and even the president of FIFA, I was introduced to an unassuming man in his late 60s.
We got talking and shared stories of his birthplace and my adopted home for a few years – Jerusalem.
Dr Bahbah and Trump
He told me that he still has the deed to his family’s 68 dunum (16 acre) Palestinian orchard.
With nostalgia, he explained how he still had his family’s UN food card which shows their allocated monthly rations from their time living in a refugee camp and in the Jerusalem’s old city.
Dr Bahnah left Jerusalem in 1976. He is now a US citizen but told me Jerusalem would always be home.
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Will Trump achieve a Gaza ceasefire?
He echoed the views I had heard in Michigan, where he had spent many months campaigning as the president of Arab-Americans for Trump.
He dismissed my scepticism that Trump would be any better than Biden for the Palestinians.
We exchanged numbers and agreed to meet for lunch a few weeks later.
A connection with Trump
Dr Bahbah invited two Arab-American friends to our lunch. Over burgers and coke, a block from the White House, we discussed their hopes for Gaza under Trump.
The three men repeated what I had heard on the campaign trail – that things couldn’t get any worse for the Palestinians than they were under Biden.
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Gaza deaths increase when aid sites open
Trump, they said, would use his pragmatism and transactional nature to create opportunities.
Dr Bahbah displayed to me his own initiative too. He revealed that he got a message to the Palestinian Authority President, Mahmoud Abbas, to suggest he ought to write a personal letter of congratulations to President Trump.
A letter from Ramallah was on the Oval Office desk on 6 November, a day after the election. It’s the sort of gesture Trump notices.
It was clear to me that the campaigning efforts and continued support of these three wealthy men had been recognised by the Trump administration.
They had become close to key figures in Trump’s team – connections that would, in time, pay off.
There were tensions along the way. When Trump announced he would “own Gaza”, Dr Bahbah was disillusioned.
And then came the AI video of Trump and Israeli Prime Minister Benjamin Netanyahu sunning themselves in a Gazan wonderland.
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President shares ‘Trump Gaza’ AI video
“It is provocative and unacceptable,” he told me just after the president posted the video in February.
Trump must have thought it was funny, so he posted it. He loves anything with his name on it.”
Then came the Trump plan to resettle Palestinians out of Gaza. To this, he released a public statement titled Urgent Press Release.
“Arab-Americans for Trump firmly rejects President Donald J Trump’s suggestion to remove – voluntarily or forcibly – Palestinians in Gaza to Egypt and Jordan,” he said.
Letter from Abbas to Trump. Pic: Bishara Bahbah
He then changed the name of his alliance, dropping Trump. It became Arab-Americans for Peace.
I wondered if the wheels were coming off this unlikely alliance.
Was he realising Trump couldn’t or wouldn’t solve the Palestinian issue? But Dr Bahbah maintained faith in the new president.
“I am worried, but at the same time, Trump might be testing the waters to determine what is acceptable…,” he told me in late February as the war dragged on.
“There is no alternative to the two-state solution.”
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He told me that he expected the president and his team to work on the rebuilding of Gaza and work to launch a process that would culminate in the establishment of a Palestinian state, side by side in peace with Israel.
It was, and remains, an expectation at odds with the Trump administration’s official policy.
The phone call
In late April, Dr Bahbah’s phone rang. The man at the other end of the line was Dr Ghazi Hamad, a senior member of Hamas.
Dr Bahbah and Dr Hamad had never met – they did not know each other.
But Hamas had identified Dr Bahbah as the Palestinian-American with the most influence in Trump’s administration.
Dr Hamad suggested that they could work together – to secure the release of all the hostages in return for a permanent ceasefire.
Hamas was already using the Qatari government as a conduit to the Americans but Dr Bahbah represented a second channel through which they hoped they could convince President Trump to increase pressure on Israel.
There is a thread of history which runs through this story. It was the widow of former Palestinian leader Yasser Arafat who passed Dr Bahbah’s number to Dr Hamad.
In the 1990s, Dr Bahbah was part of a Palestinian delegation to the multilateral peace talks.
He became close to Arafat but he had no experience of a negotiation as delicate and intractable as this.
The first step was to build trust. Dr Bahbah contacted Steve Witkoff, Trump’s Middle East envoy.
Witkoff and Bahbah had something in common – one a real-estate mogul, the other an academic, neither had any experience in diplomacy. It represented the perfect manifestation of Trump’s ‘outside the box’ methods.
Read more from Sky News:
Hamas gives ‘positive’ response to ceasefire proposal but asks for amendments
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But Witkoff was sceptical of Dr Bahbah’s proposal at first. Could he really have any success at securing agreement between Israel and Hamas? A gesture to build trust was necessary.
Bahbah claims he told his new Hamas contact that they needed to prove to the Trump administration that they were serious about negotiating.
Within weeks a remarkable moment more than convinced Dr Bahbah and Witkoff that this new Hamas back-channel could be vitally important.
On 12 May, after 584 days in Hamas captivity, Israeli-American Edan Alexander was released.
We were told at the time that his release was a result of a direct deal between Hamas and the US.
Israel was not involved and the deal was described by Hamas as a “good faith” gesture. Dr Bahbah sees it as his deal.
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Doctors on the frontline
Direct talks took place between Dr Bahbah and five Hamas officials in Doha who would then convey messages back to at least 17 other Hamas leadership figures in both Gaza and Cairo.
Dr Bahbah in turn conveyed Hamas messages back to Witkoff who was not directly involved in the Hamas talks.
A Qatari source told me that Dr Bahbah was “very involved” in the negotiations.
But publicly, the White House has sought to downplay his role, with an official telling Axios in May that “he was involved but tangentially”.
The Israeli government was unaware of his involvement until their own spies discovered the backchannel discussion about the release of Alexander.
Since that April phone call, Dr Bahbah has remained in the Qatari capital, with trips to Cairo, trying to help secure a final agreement.
He is taking no payment from anyone for his work.
As he told me when we first met back in January: “If I can do something to help to end this war and secure a future for the Palestinian people, I will.”
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