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
‘At least 59 killed’ in Gaza after Israeli military opens fire near aid centre and carries out strikes
At least 59 Palestinians have reportedly been killed after the Israeli military opened fire near an aid centre in Gaza and carried out strikes across the territory.
The Red Cross, which operates a field hospital in Rafah, said 25 people were “declared dead upon arrival” and “six more died after admittance” following gunfire near an aid distribution centre in the southern Gazan city.
The humanitarian organisation added that it also received 132 patients “suffering from weapon-related injuries” after the incident.
The Red Cross said: “The overwhelming majority of these patients sustained gunshot wounds, and all responsive individuals reported they were attempting to access food distribution sites.”
The organisation said the number of deaths marks the hospital’s “largest influx of fatalities” since it began operations in May last year.
The IDF has said it fired “warning shots” near the aid distribution site but it was “not aware of injured individuals” as a result.
It said in a statement: “Earlier today, several suspects were identified approaching IDF troops operating in the Rafah area, posing a threat to the troops, hundreds of metres from the aid distribution site.
“IDF troops operated in order to prevent the suspects from approaching them and fired warning shots.”
Palestinians mourn a loved one following the incident near the aid centre. Pic: Reuters
Mother’s despair over shooting
Somia Alshaar told Sky News her 17-year-old son Nasir was shot dead while visiting the aid centre after she told him not to go.
She said: “He went to get us tahini so we could eat.
“He went to get flour. He told me ‘mama, we don’t have tahini. Today I’ll bring you flour. Even if it kills me, I will get you flour’.
“He left the house and didn’t return. They told me at the hospital: your son…’Oh God, oh Lord’.”
Asked where her son was shot, she replied: “In the chest. Yes, in the chest.”
Somia Alshaar, pictured with her daughter, says her son was shot dead. Pic: Reuters
‘A policy of mass murder’
Hassan Omran, a paramedic with Gaza’s ministry of health, told Sky News after the incident that humanitarian aid centres in Gaza are now “centres of mass death”.
Speaking in Khan Younis, he said: “Today, there were more than 150 injuries and more than 20 martyrs at the aid distribution centres… the Israeli occupation deliberately kills and commits genocide. The Israeli occupation is carrying out a policy of mass murder.
“They call people to come get their daily food, and then, when citizens arrive at these centres, they are killed in cold blood.
“All the victims have gunshot wounds to the head and chest, meaning the enemy is committing these crimes deliberately.”
Israel has rejected genocide accusations and denies targeting civilians.
Two boys mourn their brother at Nasser Hospital in Khan Younis. Pic: Reuters
‘Lies being peddled’
The Gaza Humanitarian Foundation (GHF), the controversial US and Israeli-backed group which operates the distribution centre near Rafah, said: “Hamas is claiming there was violence at our aid distribution sites today. False.
“Once again, there were no incidents at or in the immediate vicinity of our sites.
“But that’s not stopping some from spreading the lies being peddled by ‘officials’ at the Hamas-controlled Nasser Hospital.”
The Red Cross said its field hospital in Rafah has recorded more than 250 fatalities and treated more than 3,400 “weapon-wounded patients” since new food distribution sites were set up in Gaza on 27 May.
Read more:
‘At least 798 killed’ at Gaza aid points
’10 children killed’ waiting for Gaza health clinic to open
Israel says permanent ceasefire ‘questionable’
Palestinians inspect the wreckage after an Israeli airstrike in Deir al Balah. Pic: AP
It comes after four children and two women were among at least 13 people who died in Deir al Balah, in central Gaza, after Israeli strikes pounded the area starting late on Friday, officials in Al Aqsa Martyrs hospital in the territory said.
Fifteen others died in Israeli airstrikes in Khan Younis, in southern Gaza, according to Nasser Hospital.
The Israel Defense Forces (IDF) has not responded to a request for comment on the reported deaths.
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Israeli has been carrying out attacks in Gaza since Hamas-led militants killed some 1,200 people and took 251 hostages on 7 October 2023.
Hamas still holds 50 hostages, with fewer than half of them believed to be alive, after most of the rest were released in ceasefire agreements or other deals.
Israel’s offensive in Gaza has killed more than 57,000 Palestinians, more than half of them women and children, according to Gaza’s health ministry, which does not distinguish between civilians and combatants in its count.
US President Donald Trump has said he is closing in on another ceasefire agreement that would see more hostages released and potentially wind down the war.
But after two days of talks this week with Israeli Prime Minister Benjamin Netanyahu, there were no signs of a breakthrough.
Keep up with all the latest news from the UK and around the world by following Sky News
The latest fatalities in Gaza comes as a 20-year-old Palestinian-American man was beaten to death by settlers in the Israeli-occupied West Bank on Friday, the Palestinian Health ministry said.
Sayafollah Musallet, also known as Saif, was killed during a confrontation between Palestinians and settlers in Sinjil, north of Ramallah, the ministry said.
A second man, Hussein Al-Shalabi, 23, died after being shot in the chest.
Mr Musallet’s family, from Tampa Florida, has called on the US State Department to lead an “immediate investigation”.
A State Department spokesperson said it was aware of the incident but it had no further comment “out of respect for the privacy of the family and loved ones” of the reported victim.
The Israeli military said the confrontation broke out after Palestinians threw rocks at Israelis, lightly injuring them.
As investigators continue to piece together the full picture, early findings of the Air India crash are pointing towards a critical area of concern — the aircraft’s fuel control switches.
The flight, bound for London Gatwick, crashed just moments after taking off from Ahmedabad airport on 12 June, killing all but one of the 242 people on board the plane and at least 19 on the ground.
According to the preliminary report by India’s Aircraft Accident Investigation Bureau (AAIB), the two engine fuel control switches on the plane were moved from the “RUN” to “CUTOFF” position.
These switches control fuel flow to the engines and should only be used when the aircraft is on ground, first to start the engines before a flight and later to shut them down at the gate.
They are designed so they’re unlikely to be changed accidentally, pointing to possible human error on the Air India flight.
The findings include the final conversation between the pilots and show there was confusion in the cockpit as well.
When one pilot asked the other why he cut off the fuel, he responded to say he did not do so.
The Air India plane before the crash. Pic: Takagi
Moments later, a Mayday call was made from the cockpit, but the plane could not regain power quickly enough and plummeted to the ground.
Captain Amit Singh, founder of Safety Matters Foundation, an organisation dedicated to aviation safety, told Sky News: “This exchange indicates that the engine shutdowns were uncommanded.
“However, the report does not identify the cause – whether it was crew error, mechanical malfunction, or electronic failure.”
Previous warning of ‘possible fuel switch issue’
“The Boeing 787 uses spring-loaded locking mechanisms on its fuel control switches to prevent accidental movement,” Mr Singh explained.
But a previous bulletin from the Federal Aviation Administration (FAA) “warned that these switches might be installed with the locking feature disengaged,” he said.
This could “make them susceptible to unintended movement due to vibration, contact, or quadrant flex”, he added.
The plane’s tail lodged in a building. Pic: Reuters
Speaking to Sky News, aviation expert Terry Tozner said: “The take-off was normal, the aircraft rotated at the correct speed left the ground and almost immediately, the cut-off switches were selected to off, one then two.
“But nobody has said with any clarity whether or not the latch mechanisms worked okay on this particular aircraft. So we can only assume that they were in normal working order.”
In India, there has been a backlash over the findings, with some saying the report points to pilot error without much information and almost dismisses the possibility of a mechanical or electric failure.
Indian government responds
India’s civil aviation minister Kinjarapu Ram Mohan Naidu has been quick to respond, saying: “We care for the welfare and the wellbeing of pilots so let’s not jump to any conclusions at this stage, let us wait for the final report.
“I believe we have the most wonderful workforce of pilots and crew in the whole world.”
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India plane crash survivor carries brother’s coffin
Both pilots were experienced, with around 19,000 flying hours between them, including more than 9,000 on Boeing 787s.
The report says the aircraft maintenance checks were on schedule and that there are no signs of fuel contamination or a bird strike.
So far, no safety recommendations have been issued to Boeing or General Electric, the engine manufacturers.
Concern over destroyed flight recorder
Mr Singh said “the survivability of the flight recorders also raises concern”.
The plane’s rear flight recorder, designed to withstand impact forces of 3,400 Gs and temperatures of 1,100C for 60 minutes, “was damaged beyond recovery”.
Read more:
Everything you need to know about the crash
Air India’s lone survivor is nothing short of miracle
“The Ram Air Turbine (RAT), which deploys automatically when both engines fail and power drops below a threshold, was observed as deployed in CCTV footage when the aircraft was approximately 60ft above ground level,” Mr Singh said.
“This suggests that the dual engine failure likely occurred before the official timestamp of 08:08:42 UTC, implying a possible discrepancy.”
India’s Prime Minister Narendra Modi visiting the crash site. Pic: X/AP
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Mr Singh said it was also “of particular note” that the plane’s emergency locator transmitter (ELT) did not send any signal after the crash.
“Was the ELT damaged, unarmed, mis-wired, or malfunctioning?” he said.
The report has generated more questions than answers on topics including human error, power source failures and mechanical or electrical malfunction.
The final report is expected to take a year. Meanwhile, families grapple with the unimaginable loss of loved ones in one of the worst disasters in India’s aviation history.
Donald Trump has announced he will impose a 30% tariff on imports from the European Union from 1 August.
The tariffs could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US.
Mr Trump has also imposed a 30% tariff on goods from Mexico, according to a post from his Truth Social account.
Announcing the moves in separate letters on the account, the president said the US trade deficit was a national security threat.
In his letter to the EU, he wrote: “We have had years to discuss our trading relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, trade Deficits, engendered by your tariff, and non-Tariff, policies, and trade barriers.
“Our relationship has been, unfortunately, far from reciprocal.”
In his letter to Mexico, Mr Trump said he did not think the country had done enough to stop the US from turning into a “narco-trafficking playground”.
The president of the European Commission, Ursula von der Leyen, said today that the EU could adopt “proportionate countermeasures” if the US proceeds with imposing the 30% tariff.
Ms von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.
“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued.
“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Ms von der Leyen has also said imposing tariffs on EU exports would “disrupt essential transatlantic supply chains”.
Meanwhile, Dutch Prime Minister Dick Schoof said on the X social media platform that Mr Trump’s announcement was “very concerning and not the way forward”.
He added: “The European Commission can count on our full support. As the EU we must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”
Mexico’s economy ministry said a bilateral working group aims to reach an alternative to the 30% US tariffs before they are due to take effect.
The country was informed by the US that it would receive a letter about the tariffs, the ministry’s statement said, adding that Mexico was negotiating.
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How ‘liberation day’ unfolded
Trump’s tariff threats and delays
On his so-called “liberation day” in April, Mr Trump unleashed “reciprocal tariffs” on many of America’s trade partners.
The US president said he was targeting countries with which America has a trade imbalance.
However, since then he’s backed down in a spiralling tit-for-tat tariff face-off with China, and struck a deal with the UK.
The US imposed a 20% tariff on imported goods from the EU in April but it was later paused and the bloc has since been paying a baseline tariff of 10% on goods it exports to the US.
In May, while the US and EU where holding trade negotiations, Mr Trump threated to impose a 50% tariff on the bloc as talks didn’t progress as he would have liked.
However, he later announced he was delaying the imposition of that tariff while negotiations over a trade deal took place.
As of earlier this week, the EU’s executive commission, which handles trade issues for the bloc’s 27-member nations, said its leaders were still hoping to strike a trade deal with the Trump administration.
Without one, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.
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