How UK-made cars are finding their way to Russia’s showrooms

Published

1 year ago

March 12, 2024

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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.

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.

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 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.

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.”

World

Israel attacks Houthi targets at three ports and power plant in Yemen

Published

2 hours ago

July 7, 2025

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Israel attacks Houthi targets at three ports and power plant in Yemen

Israel says its military has attacked Houthi targets at three ports and a power plant in Yemen.

Defence minister Israel Katz confirmed the strikes, saying they were carried out due to repeated attacks by the Iranian-backed rebel group on Israel.

Mr Katz said the Israeli military attacked the Galaxy Leader ship which he claimed was hijacked by the Houthis and was being used for “terrorist activities in the Red Sea”.

It came after the Israel Defense Forces (IDF) issued an evacuation warning for people at Hodeidah, Ras Issa, and Salif ports – as well as the Ras al Khatib power station, which it said is controlled by Houthi rebels.

The IDF said it would carry out airstrikes on those areas due to “military activities being carried out there”.

Afterwards, Mr Katz confirmed the strikes at the ports and power plant.

Earlier in the day, a ship was reportedly set on fire after being attacked in the Red Sea.

A private security company said the assault, off the southwest coast of Yemen, resembled that of the Houthi militant group.

It was the first such incident reported in the vital shipping corridor since mid-April.

The vessel, identified as the Liberian-flagged, Greek-owned bulk carrier Magic Seas, had taken on water after being hit by sea drones, maritime security sources said. The crew later abandoned the ship.

The Houthi rebels have been launching missile and drone attacks against commercial and military ships in the region in what the group’s leadership called an effort to end Israel’s offensive against Hamas in Gaza.

Between November 2023 and January 2025, the Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors.

The Houthis paused attacks in a self-imposed ceasefire until the US launched an assault against the rebels in mid-March.

That ended weeks later and the Houthis have not attacked a vessel, though they have continued occasional missile attacks targeting Israel.

A renewed Houthi campaign against shipping could again draw in US and Western forces to the area.

The ship attack comes at a sensitive moment in the Middle East.

A possible ceasefire in the Israel-Hamas war hangs in the balance and Iran is weighing up whether to restart negotiations over its nuclear programme.

It follows American airstrikes last month, which targeted its most-sensitive atomic sites amid an Israeli war against the Islamic Republic that ended after 12 days.

How did the Houthis come to control much of Yemen?

A civil war erupted in Yemen in late 2014 when the Houthis seized Sanaa.

Worried by the growing influence of Shia Iran along its border, Saudi Arabia led a Western-backed coalition in March 2015, which intervened in support of the Saudi-backed government.

The Houthis established control over much of the north and other large population centres, while the internationally recognised government based itself in the port city of Aden.

World

‘We’ll never yield’: Millions of Iranians unite in mourning

Published

2 hours ago

July 7, 2025

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'We'll never yield': Millions of Iranians unite in mourning

Under the red flag of martyrdom, they beat their chests in memory of a fallen religious leader as the cleric recounts his fate outside one of Tehran’s oldest mosques.

Imam Hussein was tricked and martyred by his enemies in the seventh-century battle of Karbala. The crowd of grown men and women wept with grief as Hussein’s story was retold on Sunday.

Ashura is always deeply moving for the Shia faithful but this year even more so. It comes after the trauma of Israel’s surprise attacks on Iran.

There was a sense of emotional release and a chance for Iranians to come together in solidarity.

Ashura is also a reminder that Iran’s revolutionary leaders draw much of their power from the strength of religion in this country after a conflict its enemies hoped would see those same leaders toppled.

The festival has come at just the right time for its embattled government.

Iran’s supreme leader has appeared in public for the first time since Israel attacked his country. Ayatollah Ali Khamenei was greeted with ecstatic cheers by his followers at Ashura prayers.

His supporters told us they welcomed his return. “I was so happy that I didn’t know what to do,” said one woman. “This caused our big enemies the United States and Israel to receive a great slap in the mouth.”

“His appearance on TV for Ashura,” a young man told us, “showed that all the talk about him hiding and taking the path of peace with the United States is not true and it shows that he is holding his position strongly and steadfastly”.

We had been given rare access to Iran among a handful of journalists who were let in after the 12-day war.

Its scars aren’t hard to find – buildings left with gaping holes where Israeli airstrikes took out members of Iran’s elite, one after another.

And Abbas Aslani, an analyst with close ties to the government, says there is a fear it may not be over.

“The Iranian government and the army are prepared for a new round of conflict, because they think that the other party, specifically Israel, is not to be trusted in terms of any ceasefire,” he said.

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At the Ashura ceremony, the crowd chants, “we’ll never yield to humiliation” – an age-old message for Iran’s enemies today as they brace for the possibility of more conflict.

World

What is the possible Gaza hostage and ceasefire deal – and what challenges could lie ahead?

Published

8 hours ago

July 6, 2025

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What is the possible Gaza hostage and ceasefire deal - and what challenges could lie ahead?

An Israeli delegation is heading to Qatar for indirect talks with Hamas on a possible hostage and ceasefire deal in Gaza.

The development comes ahead of a meeting between Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump in Washington DC on Monday aimed at pushing forward peace efforts.

The US leader has been increasing pressure on the Israeli government and Hamas to secure a permanent ceasefire and an end to the 21-month-long war in Gaza.

Mr Trump said on Tuesday on social media that Israel had agreed “to the necessary conditions to finalise” a deal on a truce.

And Hamas, which runs the coastal Palestinian territory, said on Friday it has responded to the US-backed proposal in a “positive spirit”.

So what is in the plan?

The plan is for an initial 60-day ceasefire that would include a partial release of hostages held by the militant group in exchange for more humanitarian supplies being allowed into Gaza.

The proposed truce calls for talks on ending the war altogether.

The war in Gaza began after Hamas attacked Israel on 7 October 2023, killing 1,200 people and taking 250 others hostage. Dozens of hostages have since been released or rescued by Israeli forces, while 50 remain in captivity, including about 30 who Israel believes are dead.

The proposal would reportedly see about half of the living hostages and about half of the dead hostages returned to Israel over 60 days, in five separate releases.

Eight living hostages would be freed on the first day and two released on the 50th day, according to an Arab diplomat from one of the mediating countries, it is reported.

Five dead hostages would be returned on the seventh day, five more on the 30th day and eight more on the 60th day.

That would leave 22 hostages still held in Gaza, 10 of them believed to be alive. It is not clear whether Israel or Hamas would determine who is to be released.

Hamas has sought guarantees that the initial truce would lead to a total end to the war and the withdrawal of Israeli troops from Gaza.

A Hamas official has said 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.

Possible challenges ahead

And in a sign of the potential challenges still facing the two sides, a Palestinian official from a militant group allied with Hamas said concerns remained.

The concerns were over humanitarian aid, passage through the Rafah crossing in southern Israel to Egypt and clarity over a timetable for Israeli troop withdrawals.

Hamas’s “positive” response to the proposal had slightly different wording on three issues around humanitarian aid, the status of the Israeli Defense Forces (IDF) 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.”

The Times of Israel reported Hamas has proposed three amendments to the proposed framework.

According to a source, Hamas wants the agreement to say that talks on a permanent ceasefire will continue until an agreement is reached; that aid will fully resume through mechanisms backed by the United Nations and other international aid organisations; and that the IDF withdraws to positions it maintained before the collapse of the previous ceasefire in March.

Mr Netanyahu’s office said in a statement that changes sought by Hamas to the ceasefire proposal were “not acceptable to Israel”.

However, his office said the delegation would still fly to Qatar to “continue efforts to secure the return of our hostages based on the Qatari proposal that Israel agreed to”.

Another potential challenge is that Mr Netanyahu has repeatedly said Hamas must be disarmed, which is a demand the militant group has so far refused to discuss.

Hamas has said it is willing to free all the hostages in exchange for a full withdrawal of Israeli troops and an end to the war in Gaza.

Israel rejects that offer, saying it will agree to end the war if Hamas surrenders, disarms and goes into exile – something that the group refuses.

Previous negotiations have stalled over Hamas demands of guarantees that further negotiations would lead to the war’s end, while Mr Netanyahu has insisted Israel would resume fighting to ensure the group’s destruction.