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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.

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However, the government is concerned about this grey area, whereby goods may be sent to Russia via former Soviet satellite states in the Caucasus and central Asia.

A Moscow showroom showing at least one model for sale.
Image:
A Moscow showroom showing at least one car for sale.

Cars are among the items banned from Russia under the so-called “dual use” sanctions regime. There is a specific ban of the sale of luxury cars – those worth more than £42,000 – to Russia.

The HMRC database, which also shows the count of cars sold as well as the total value, reveals that the average value of UK cars exported to Azerbaijan was more than £100,000 – suggesting that the consignments are primarily or exclusively luxury cars.

Britain’s motoring lobby group the SMMT said: “UK vehicle manufacturers are committed to full compliance with all current and future trade sanctions.

“While trade flows can vary and, indeed, be quite volatile with growing economies, there is no available evidence to indicate a lack of compliance with existing sanctions, but manufacturers will remain vigilant, and would condemn any party that puts their commitment to compliance at risk.”

Sanctions experts said part of the challenge in combating the flow of goods to Russia via third countries (as appears to be happening in this case) is that it is very difficult, sometimes near impossible, to track those consignments once they enter those other countries.

Portbury in Bristol is one of the UK's main ports to handle the import and export of motor vehicles.
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Portbury in Bristol is one of the UK’s main ports to handle the import and export of motor vehicles.

Tom Keatinge, Director at the Centre for Financial Crime & Security Studies, Royal United Services Institute says: “There are obviously very close economic ties between places like Azerbaijan, Armenia and Russia, they sit within a kind of common economic area. And so really, once the good is in that area, your ability to track it as the manufacturer in the UK is lost.

“What you should of course, be asking yourself, when it comes to exporting that car, or whatever it might be initially is, ‘Do I really think that this exporter who’s suddenly come out of nowhere to buy 100 cars Is actually importing cars only into that third country? Or might they be trying to make money out of circumventing sanctions and selling that onward into Russia?'”

Rolls-Royce, which is owned by BMW, said: “Rolls-Royce Motor Cars ceased production and supply of cars for the Russian market in late February 2022, before international trade sanctions were put in place. In the meantime, governments have implemented far-reaching sanctions, which we fully comply with and support.

“Retail sales of cars to clients are managed by our global dealer network, comprised of independently owned and operated businesses. Our global dealer network is contractually obliged to follow all applicable national and international legal regulations, including those relating to export control.

“If any new Rolls-Royce motor car has been imported into Russia since late February 2022 this has been done so without the knowledge or support of Rolls-Royce Motor Cars.”

A 2023 Bentley car is shown for sale on a Russian car dealership's website.
Pic: Bentley Moscow
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A 2023 Bentley car is shown for sale on a Russian franchise dealership’s website.
Pic: Bentley Moscow

A representative from Bentley, owned by VW, said: “We are committed to full compliance with all current and future trade sanctions and there is no evidence to suggest a lack of compliance with existing sanctions, or indeed a change of sales trend in Azerbaijan.”

While the HMRC data does not identify specific carmakers or consignments, it does show that the port most used for this particular trade from the UK was the Port of Bristol, which had never previously exported more than a few million pounds worth of goods each year to Azerbaijan. In the two years following the invasion it saw those exports shoot up to more than £100m a year. The Port of Bristol did not respond to Sky News’s requests for a comment.

For the UK as a whole, the dramatic rise in car exports to Azerbaijan stands out in the trade statistics. In the space of a couple of years, this state of 10 million people, with a GDP around the same size as Ghana, has become the UK car industry’s 16th biggest export destination by value, ahead of Austria, Portugal and Sweden.

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Feb: Is Russia beating UK sanctions?

Sky News has previously shown that many other banned items, including those known to have been repurposed as weapons, have been sent to former Soviet states in the Caucasus and Central Asia, including Kyrgyzstan and Armenia. Those states have all recorded sharp increases in their exports to Russia.

Britain’s sanctions minister Anne-Marie Trevelyan said: “The work of investigative journalists and NGOs’ continuing efforts to highlight circumvention are an important part of our collective efforts to track and evidence Putin’s abhorrent crimes.

“We have introduced the largest and most severe package of sanctions ever imposed on Russia or indeed any major economy with 2,000 individuals and entities under the Russia regime. Alongside our international allies we’ve been clear no country should be propping up Russia’s war machine.

“We continue to bear down on those who do business with Putin and his cronies, including sanctioning individuals who try to bypass our sanctions, and working with partners and a range of third countries to stem the flow of goods into Russia.”

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Hadush Kebatu: CCTV images show last sightings of wanted asylum seeker after he was released from prison in error

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Hadush Kebatu: CCTV images show last sightings of wanted asylum seeker after he was released from prison in error

CCTV images have been released of a jailed asylum seeker who was accidentally freed from prison – as police detailed the last sighting of him.

Hadush Kebatu was released in error from HMP Chelmsford on Friday instead of being handed over to immigration officials for deportation – one month into a 12-month sentence.

As the manhunt continues, the images show him in the Essex town on Friday and later the same day in Dalston, east London, where he was carrying a “distinctive white bag with pictures of avocados on it”, said the Metropolitan Police.

The last sighting of Kebatu is thought to have been in Dalston CLR James Library in Dalston Square on Friday evening.

The Ethiopian national had been found guilty in September of sexually assaulting a 14-year-old girl and a woman in Epping.

His crimes while staying at The Bell Hotel in Epping sparked weeks of protests over the summer.

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Police call on public to assist on manhunt

The Met Police, which has been leading the search for Kebatu, alongside Essex Police and the British Transport Police, has made a direct appeal Kebatu to hand himself in.

He left Chelmsford train station at 12.42pm on Friday and arrived at Stratford station in east London soon after at 1.12pm.

Kebatu had since taken “a number of journeys” across London and had “access to funds”, according to Met Commander James Conway.

(L-R) Hadush Kebatu in Chelmsford on Friday and later in Dalston, east London. Pic: Met Police
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(L-R) Hadush Kebatu in Chelmsford on Friday and later in Dalston, east London. Pic: Met Police

Last sighting

The force said he was last seen shortly before 8pm on Friday evening in the Dalston area of Hackney in east London.

It has released two CCTV images of him from Friday, one in Chelmsford where he was wearing his prison-issued, grey tracksuit and holding a clear, plastic bag containing his possessions.

Hadush Kebatu was arrested in July. Pic: Crown Prosecution Service/PA
Image:
Hadush Kebatu was arrested in July. Pic: Crown Prosecution Service/PA

The other was taken in Dalston, where he was still wearing his grey tracksuit, but was carrying his belongings “in a distinctive white bag with pictures of avocados on it”.

A Met statement added: “Additional officers have been deployed to the area to carry out further searches, but we are appealing for the help of local residents to report any sightings as soon as possible.”

Mr Conway has asked for members of the public who have given assistance to Kebatu to contact them or anyone who sees him to call 999.

And in a direct appeal to Kebatu, Mr Conway added: “We want to locate you in a safe and controlled way.

“You had already indicated a desire to return to Ethiopia when speaking to immigration staff, the best outcome for you is to make contact directly with us by either calling 999 or reporting yourself to a police station.”

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Watch: Witness describes confusion outside prison

Meanwhile, a lorry driver, who was delivering equipment to Chelmsford jail on Friday, told Sky News correspondent Tom Parmenter he saw the “confused” offender outside the facility being directed by prison staff to the town’s railway station following his release.

The witness, called Sim, said Kebatu came out of the jail saying, “Where am I going? What am I doing?” and hanging around for about 90 minutes as he tried to find out where he should be going.

Sim said the offender returned to the prison “four or five times” but was turned away.

He said Kebatu knew he should be deported but the prison staff were “basically sending him away” and saying to him, “Go, you’ve been released, you go”.

Hadush Kebatu, who was jailed for two sexual assaults in Epping. Pic: Essex Police/PA
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Hadush Kebatu, who was jailed for two sexual assaults in Epping. Pic: Essex Police/PA

Kebatu was spotted later in Chelmsford town centre asking for assistance before getting on a train to London.

HM Prison and Probation Service is introducing new and mandatory procedures for prisoner releases after Kebatu was mistakenly freed, Ministry of Justice sources say.

Duty governors, who are responsible for the daily secure operation of prisons, will now be required to complete additional checks the evening before a release, it is understood.

Governors will need to provide assurance that the procedure is in place on Monday, Sky News understands.

Justice Secretary David Lammy said on Friday night that Kebatu was “at large in London”. He said he was “livid on behalf of the public” and added that he had launched an investigation.

Sir Keir Starmer said he was “appalled” at the accidental release and said it was “totally unacceptable”, adding: “This man must be caught and deported for his crimes.”

A prison officer has been taken off duties to discharge prisoners while an investigation takes place.

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Lucy Powell named Labour’s new deputy leader

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Lucy Powell named Labour's new deputy leader

Former Commons leader Lucy Powell has been crowned Labour’s new deputy leader in a closely fought race against Education Secretary Bridget Phillipson.

Ms Powell received 87,407 votes to Ms Phillipson’s 73,536 – a majority of 13,871 – in a contest that was widely perceived as a referendum on Sir Keir Starmer’s popularity with the membership.

Ms Powell was seen as the “anti-Starmer” candidate given she was sacked from cabinet just last month, and centred her campaign on being an independent voice for the backbenches.

Politics live: Follow for updates as Labour names new deputy leader

Ms Phillipson was seen as Number 10’s preferred option, and she had pitched herself as the “unity candidate”, warning that voting for her opponent would result in “internal debate and divisions that leads us back to opposition”.

However speaking to Sky News’s political editor Beth Rigby following the result, Ms Powell insisted she would be a “friend” to the prime minister, adding: “I am confident we can work well together.”

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She said she was not here to “write an alternative policy platform” but rather “to make sure Labour values and beliefs are right at the heart of the conversation, and that we’re giving a really clear sense of who we’re for”.

Ms Powell’s earlier victory speech made clear where she thought Labour was going wrong, and what she would challenge the government on.

The Manchester Central MP said Labour “won’t win by trying to out-Reform Reform, but by building a broad progressive consensus”.

She said that started with “wrestling back the political megaphone” from Reform leader Nigel Farage, and “setting the agenda more strongly”.

“Let’s be honest, we’ve let Farage and his ilk run away with it. He wants to blame immigration for all the country’s problems. We reject that,” she said.

“Our diagnosis is different, that for too long the country and the economy has worked in the interests of the few, not the many.”

The reference to “for the many not the few” – the slogan during Jeremy Corbyn’s time at the helm, was not lost on his then shadow chancellor John McDonnell.

The veteran left-winger said on X: “The Labour Party members have spoken & the message is clear, they want change. It’s good to see a return to references to the Labour Party serving once more the many not the few & that Labour must not try out Reform, Reform. Our members realise a new start is desperately needed.”

‘Unwanted deputy imposed on PM’

The deputy leadership role is important as it’s the key connection between the Labour members and the upper echelons of the Labour Party.

The race was triggered by the sudden departure of Angela Rayner, after she admitted to underpaying stamp duty.

The scandal sparked a reshuffle in which Ms Powell was one of the only casualties. It makes the new partnership potentially very awkward for Sir Keir, especially as his new deputy will be free to speak out against his policies from the back benches rather than being bound by collective responsibility like Ms Phillipson.

However in a possible olive branch, Sky News understands Ms Powell will be asked to attend political cabinet meetings, even though she will not officially be a member of cabinet.

Tory chairman Kevin Hollinrake said “weak Keir Starmer” has had an unwanted deputy leader “imposed on him by the Labour Party”, adding: “The failure of the Keir Starmer candidate, Bridget Philipson, is another defeat of the prime minister’s authority.”

Turnout for the vote was low – just 16.6%, suggesting a lack of enthusiasm among party members and its affiliates.

Sir Keir congratulated Ms Powell after the results were announced, saying she “has always been a proud defender of Labour values, and that is exactly what we need at this moment”.

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PM: Powell is ‘a proud defender of Labour values’

He echoed some of her language around immigration, as he attacked the Tories for this week suggesting they supported a policy to deport people who have settled in the UK legally, something Reform UK has advocated.

“That is what we’re up against on the right of politics, a politics of division and grievance that wants to take this great country to a very dark place”, Sir Keir said.

PM warns of ‘battle for the soul of our nation’

The prime minister is under pressure as the party plummets in the polls, with many MPs on the left predicting he could be gone by May if the local elections go badly.

Sir Keir acknowledged Labour is having a difficult time after it lost the Caerphilly by-election to Plaid Cymru on Thursday.

He said it was a “bad result” and “a reminder that people need to look out their window and see change and renewal in their community, opportunities for their children, public services rebuilt, the cost of living crisis tackled”.

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Phillipson ‘disappointed to lose’

“We must unite. We must keep our focus on what is, in my view, the defining battle for the soul of our nation. I know that Lucy will do just that,” he said.

Saturday’s result is the culmination of a six week contest, with the pair having had to secure nominations from 80 MPs in the first round and then win the backing of 5% of local parties or Labour affiliated groups before making it to the final vote.

Initially six candidates entered, but it quickly became a two-horse race as only Ms Powell and Ms Phillipson reached the 80 threshold, following claims from the left of a “stitch up”.

Ms Phillipson said she was “disappointed to lose” but Ms Powell “has my full support”.

She added: “What we all need to do now is unite this party, beat Reform and secure that second term Labour government.”

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How many prisoners are released by mistake? Here are the stats as search for migrant sex offender continues

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How many prisoners are released by mistake?  Here are the stats as search for migrant sex offender continues

The manhunt for a migrant who sexually assaulted a schoolgirl, and was released from prison in error, is ongoing.

Hadush Gerberslasie Kebatu was jailed for 12 months earlier this year after he sexually assaulted a 14-year-old girl and a woman in Epping.

He had been staying in the Bell Hotel in Epping and his arrest triggered large-scale protests and disorder.

The Ethiopian national, who came to the UK on a small boat in the summer, is now being searched for by the police after he was accidentally freed on Friday.

Follow the latest updates on the manhunt

Hadush Kebatu, jailed for two sexual assaults in Epping. Pic: Essex Police / PA
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Hadush Kebatu, jailed for two sexual assaults in Epping. Pic: Essex Police / PA

How many prisoners are released in error?

According to government statistics published in July, 262 prisoners were released in error in the 12 months to March 2025 – a 128% increase from 115 the previous year.

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The report states: “Of the 262 releases in error, 233 of these releases in error occurred from prison establishments, while 29 were released in error at the courts.

“Releases in error from establishments could also be a result of errors by the court.”

This is out of a total prison population across England and Wales of roughly 86,000.

Sky News has contacted the HM Prison & Probation Service to know how many of the 262 prisoners have since been found and returned to custody.

In September 2024, Sky News reported how dozens of people released from jail under the government’s emergency prison scheme were freed by mistake.

The Labour government said it was forced to release hundreds of inmates early because prisons were at capacity.

William Fernandez. Pic: PA
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William Fernandez. Pic: PA

Kebatu, who is thought to be in the London area, was due to be deported when he was mistakenly released from HMP Chelmsford on Friday.

Previous high-profile manhunts

William Fernandez, who was awaiting trial for sexual assault, was released from HMP Wormwood by error in March 2021. He then went on to rape a 16-year-old girl and sexually assault a young woman.

Joseph McCann. Pic: Police handout
Image:
Joseph McCann. Pic: Police handout

In December 2019, the prisons and probation service “apologised unreservedly” after serial rapist Joseph McCann was freed to commit a series of sex attacks on women and children.

In July 2017, an inmate who was released from prison just months into a nine-year sentence due to a “clerical error” was arrested after weeks on the run.

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