The minister chargeable for the UK’s sanctions towards Russia has advised UK carmakers to examine their provide chains after Sky Information evaluation steered luxurious fashions had been discovering their option to Moscow showrooms by way of ex-Soviet states.
Overseas Workplace minister Anne-Marie Trevelyan advised a committee of MPs the report was a major instance of the “whack a mole” problem created by the buying and selling controls imposed on Moscow for its invasion of Ukraine.
Sky reported on Tuesday morning that whereas direct British automotive exports to Russia had fallen to zero, that collapse had been adopted by a corresponding enhance in automotive exports to nations neighbouring Russia, most notably Azerbaijan.
Please use Chrome browser for a extra accessible video participant
Sky report talked about in Overseas Affairs Committee
The evaluation, primarily based on official HMRC commerce information, confirmed the UK exported £273m of automobiles to Azerbaijan final 12 months, a 1,860% enhance in contrast with the five-year interval previous the struggle.
Separate figures recorded an unprecedented enhance in automotive exports to Russia from Azerbaijan.
It has raised present fears that different merchandise, not simply luxurious vehicles, could also be discovering their means from the UK to Russia by means of a again door.
Responding to a query on the Sky report throughout proof to the international affairs committee of MPs, Ms Trevelyan mentioned she anticipated firms to observe the clear steerage surrounding provide chains.
“It units out very clearly that they should not be doing enterprise, clearly, with Russia or doubtlessly with a 3rd nation that may help Russia”, she mentioned.
The minister added: “If it seems that there’s a diversionary exercise to promote items which have a possible each twin use and worth, then there’s a want for these companies to think about their place and for DBT (Division for Enterprise and Commerce) and now the Workplace of Commerce group to have conversations with them.”
Click on to subscribe to the Sky Information Every day wherever you get your podcasts
She mentioned firms legitimately could not have seen a threat, “and I feel that is the problem of whack a mole”, she concluded.
A Moscow showroom displaying a minimum of one mannequin on the market
Carmakers have insisted they aren’t supplying automobiles to Russia.
Its foyer group, the SMMT, mentioned they had been dedicated to the foundations and persevering with that vigilance.
It added that producers “would condemn any occasion that places their dedication to compliance in danger”.
