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
Israeli soldiers ‘psychologically broken’ after ‘confronting the reality’ in Gaza, UN expert says
A UN expert has said some young soldiers in the Israeli Defence Forces are being left “psychologically broken” after “confront[ing] the reality among the rubble” when serving in Gaza.
Francesca Albanese, the UN Human Rights Council’s special rapporteur on the occupied Palestinian territories, was responding to a Sky News interview with an Israeli solider who described arbitrary killing of civilians in Gaza.
She told The World with Yalda Hakim that “many” of the young people fighting in Gaza are “haunted by what they have seen, what they have done”.
“It doesn’t make sense,” Ms Albanese said. “This is not a war, this is an assault against civilians and this is producing a fracture in many of them.
“As that soldier’s testimony reveals, especially the youngest among the soldiers have been convinced this is a form of patriotism, of defending Israel and Israeli society against this opaque but very hard felt enemy, which is Hamas.
“But the thing is that they’ve come to confront the reality among the rubble of Gaza.”
An Israeli soldier directs a tank near the border with the Gaza Strip, in southern Israel. Pic: AP
Being in Gaza is “probably this is the first time the Israeli soldiers are awakening to this,” she added. “And they don’t make sense of this because their attachment to being part of the IDF, which is embedded in their national ideology, is too strong.
“This is why they are psychologically broken.”
Jonathan Conricus, a former IDF spokesman who is now a senior fellow at the Foundation for Defence of Democracies, said he believes the Sky News interview with the former IDF solider “reflects one part of how ugly, difficult and horrible fighting in a densely populated, urban terrain is”.
“I think [the ex-soldier] is reflecting on how difficult it is to fight in such an area and what the challenges are on the battlefield,” he said.
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Ex-IDF spokesperson: ‘No distinction between military and civilians’
‘An economy of genocide’
Ms Albanese, one of dozens of independent UN-mandated experts, also said her most recent report for the human rights council has identified “an economy of genocide” in Israel.
The system, she told Hakim, is made up of more than 60 private sector companies “that have become enmeshed in the economy of occupation […] that have Israel displace the Palestinians and replace them with settlers, settlements and infrastructure Israel runs.”
Israel has rejected allegations of genocide in Gaza, citing its right to defend itself after Hamas’s attack on 7 October 2023.
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‘Israel has shifted towards economy of genocide’
The companies named in Ms Albanese’s report are in, but not limited to, the financial sector, big tech and the military industry.
“These companies can be held responsible for being directed linked to, or contributing, or causing human rights impacts,” she said. “We’re not talking of human rights violations, we are talking of crimes.”
“Some of the companies have engaged in good faith, others have not,” Ms Albanese said.
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The companies she has named include American technology giant Palantir, which has issued a statement to Sky News.
It said it is “not true” that Palantir “is the (or a) developer of the ‘Gospel’ – the AI-assisted targeting software allegedly used by the IDF in Gaza, and that we are involved with the ‘Lavender’ database used by the IDF for targeting cross-referencing”.
“Both capabilities are independent of and pre-ate Palantir’s announced partnership with the Israeli Defence Ministry,” the statement added.
An Israeli reservist who served three tours of duty in Gaza has told Sky News in a rare on-camera interview that his unit was often ordered to shoot anyone entering areas soldiers defined as no-go zones, regardless of whether they posed a threat, a practice he says left civilians dead where they fell.
“We have a territory that we are in, and the commands are: everyone that comes inside needs to die,” he said. “If they’re inside, they’re dangerous you need to kill them. No matter who it is,” he said.
Speaking anonymously, the soldier said troops killed civilians arbitrarily. He described the rules of engagement as unclear, with orders to open fire shifting constantly depending on the commander.
The soldier is a reservist in the Israel Defence Force’s 252nd Division. He was posted twice to the Netzarim corridor; a narrow strip of land cut through central Gaza early in the war, running from the sea to the Israeli border. It was designed to split the territory and allow Israeli forces to have greater control from inside the Strip.
He said that when his unit was stationed on the edge of a civilian area, soldiers slept in a house belonging to displaced Palestinians and marked an invisible boundary around it that defined a no-go zone for Gazans.
“In one of the houses that we had been in, we had the big territory. This was the closest to the citizens’ neighbourhood, with people inside. And there’s an imaginary line that they tell us all the Gazan people know it, and that they know they are not allowed to pass it,” he said. “But how can they know?”
People who crossed into this area were most often shot, he said.
“It was like pretty much everyone that comes into the territory, and it might be like a teenager riding his bicycle,” he said.
The soldier is seen in Gaza. Photos are courtesy of the interviewed soldier, who requested anonymity
The soldier described a prevailing belief among troops that all Gazans were terrorists, even when they were clearly unarmed civilians. This perception, he said, was not challenged and was often endorsed by commanders.
“They don’t really talk to you about civilians that may come to your place. Like I was in the Netzarim road, and they say if someone comes here, it means that he knows he shouldn’t be there, and if he still comes, it means he’s a terrorist,” he said.
“This is what they tell you. But I don’t really think it’s true. It’s just poor people, civilians that don’t really have too many choices.”
He said the rules of engagement shifted constantly, leaving civilians at the mercy of commanders’ discretion.
“They might be shot, they might be captured,” he said. “It really depends on the day, the mood of the commander.”
He recalled an occasion of a man crossing the boundary and being shot. When another man came later to the body, he too was shot.
Later the soldiers decided to capture people who approached the body. Hours after that, the order changed again, shoot everyone on sight who crosses the “imaginary line”.
The Israeli soldier during his on-camera interview with Sky News
At another time, his unit was positioned near the Shujaiya area of Gaza City. He described Palestinians scavenging scrap metal and solar panels from a building inside the so-called no-go zone.
“For sure, no terrorists there,” he said. “Every commander can choose for himself what he does. So it’s kind of like the Wild West. So, some commanders can really decide to do war crimes and bad things and don’t face the consequences of that.”
The soldier said many of his comrades believed there were no innocents in Gaza, citing the Hamas-led 7 October attack that killed around 1,200 people and saw 250 taken hostage. Dozens of hostages have since been freed or rescued by Israeli forces, while about 50 remain in captivity, including roughly 30 Israel believes are dead.
He recalled soldiers openly discussing the killings.
“They’d say: ‘Yeah, but these people didn’t do anything to prevent October 7, and they probably had fun when this was happening to us. So they deserve to die’.”
He added: “People don’t feel mercy for them.”
“I think a lot of them really felt like they were doing something good,” he said. “I think the core of it, that in their mind, these people aren’t innocent.”
The IDF soldier during one of his three tours in Gaza
In Israel, it is rare for soldiers to publicly criticise the IDF, which is seen as a unifying institution and a rite of passage for Jewish Israelis. Military service shapes identity and social standing, and those who speak out risk being ostracised.
The soldier said he did not want to be identified because he feared being branded a traitor or shunned by his community.
Still, he felt compelled to speak out.
“I kind of feel like I took part in something bad, and I need to counter it with something good that I do, by speaking out, because I am very troubled about what I took and still am taking part of, as a soldier and citizen in this country,” he said
“I think the war is… a very bad thing that is happening to us, and to the Palestinians, and I think it needs to be over,” he said.
He added: “I think in Israeli community, it’s very hard to criticise itself and its army. A lot of people don’t understand what they are agreeing to. They think the war needs to happen, and we need to bring the hostages back, but they don’t understand the consequences.
“I think a lot of people, if they knew exactly what’s happening, it wouldn’t go down very well for them, and they wouldn’t agree with it. I hope that by speaking of it, it can change how things are being done.”
The soldier is a reservist in the Israel Defence Force’s 252nd Division
We put the allegations of arbitrary killings in the Netzarim corridor to the Israeli military.
In a statement, the IDF said it “operates in strict accordance with its rules of engagement and international law, taking feasible precautions to mitigate civilian harm”.
“The IDF operates against military targets and objectives, and does not target civilians or civilian objects,” the statement continued.
The Israeli military added that “reports and complaints regarding the violation of international law by the IDF are transferred to the relevant authorities responsible for examining exceptional incidents that occurred during the war”.
On the specific allegations raised by the soldier interviewed, the IDF said it could not address them directly because “the necessary details were not provided to address the case mentioned in the query. Should additional information be received, it will be thoroughly examined.”
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The statement also mentioned the steps the military says it takes to minimise civilian casualties, including issuing evacuation warnings and advising people to temporarily leave areas of intense fighting.
“The areas designated for evacuation in the Gaza Strip are updated as needed. The IDF continuously informs the civilian population of any changes,” it said.
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