The extraordinary, unprecedented and largely unexplained flows of thousands and thousands of kilos of British luxurious vehicles into states neighbouring Russia continued in February, based on new official knowledge.
Some £26m price of British vehicles have been exported to Azerbaijan in February, based on knowledge from HM Income & Customs.
The numbers present that within the newest quarter this former Soviet state with creating economic system standing was the seventeenth largest vacation spot for UK vehicles, greater than long-established export markets resembling Eire, Portugal and Qatar.
Azerbaijan’s ascent has coincided nearly to the month with the imposition of sanctions on the export of vehicles to Russia.
British vehicles are banned from being despatched into Russia, each as “twin use” items, which may very well be repurposed as weapons, and, for any vehicles over the worth of £42,000, below particular luxurious items restrictions.
Nevertheless, whilst UK automobile exports to Russia plummeted to zero, they’ve risen sharply to states neighbouring Russia, together with Kazakhstan, Kyrgyzstan, Georgia and, most notably of all, Azerbaijan.
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Whereas it’s unattainable to show the place these shipments find yourself ultimately, there’s plentiful anecdotal proof that these international locations are getting used as conduits to smuggle banned items to Russia.
The newest HMRC knowledge reveals that within the three months to February, the typical worth of the vehicles being despatched to Azerbaijan was over £115,000, making this small, comparatively poor economic system probably the most high-value luxurious automobile markets on the earth – alongside Switzerland, Luxembourg and Saudi Arabia.
The full worth of UK automobile exports to Azerbaijan within the two years for the reason that invasion of Ukraine and the imposition of sanctions is now £523m. That compares to £58m within the instantly previous two years.
Britain’s motor foyer group, the Society of Motor Producers and Merchants (SMMT), has insisted that this 800% improve will be defined by home components within the Azerbaijani economic system – and isn’t linked with Russian sanctions.
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March: British-made luxurious vehicles nonetheless being purchased by wealthy Russians
Learn extra:
UK-made vehicles are entering into Russia regardless of sanctions
2,000% improve in automobile gross sales to Azerbaijan ‘has nothing to do with Russia’
An SMMT spokesperson mentioned: “UK carmakers adjust to all commerce sanctions and would condemn any social gathering placing that dedication in danger. Automotive exports from UK factories to Azerbaijan have grown since 2019 because of a number of components, together with important new mannequin launches, pent-up demand and a rising home urge for food for UK luxurious vehicles. Certainly, UN knowledge reveals that simply two vehicles of any origin have been formally exported from Azerbaijan to Russia this 12 months.
“We have now by no means dominated out the chance that third events would possibly exploit any vulnerabilities within the sanction regime, and producers do all the things of their energy to forestall this. Any UK-built automobile on sale in Russia discovered its approach there with out their authorisation. It is a fast-moving international situation masking merchandise from a number of sectors in lots of international locations deploying sanctions, and tackling any vulnerabilities requires a coordinated, international response.”
Nevertheless, whereas United Nations (UN) knowledge suggests the amount of vehicles being formally exported to Russia stays low, that very same proof means that, removed from behaving like a standard automobile market, Azerbaijan does appear to be funnelling vehicles off elsewhere into Central Asia.
Opposite to the SMMT’s evaluation, which suggests the automobile exports will be defined by home components, automobile exports from Azerbaijan have risen by 4,800% for the reason that invasion of Russia, with a lot of the vehicles destined (based on UN knowledge) for Kazakhstan, Kyrgyzstan, Georgia and the United Arab Emirates.
Based on UK authorities sources, these states are understood to be broadly used as conduits for items into Russia.
Vehicles usually are not the one British items to have seen a big spike in exports to Central Asia and the Caucasus – so too have parts and equipment used to make weapons. In a go to to Kyrgyzstan this week, Overseas Secretary Lord Cameron admitted that Russia is utilizing central Asian international locations to sidestep sanctions and construct its “battle machine”.
