The minister responsible for the UK’s sanctions against Russia has told UK carmakers to check their supply chains after Sky News analysis suggested luxury models were finding their way to Moscow showrooms via ex-Soviet states.
Foreign Office minister Anne-Marie Trevelyan told a committee of MPs the report was a prime example of the “whack a mole” challenge created by the trading controls imposed on Moscow for its invasion of Ukraine.
Sky reported on Tuesday morning that while direct British car exports to Russia had fallen to zero, that collapse had been followed by a corresponding increase in car exports to countries neighbouring Russia, most notably Azerbaijan.
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Sky report mentioned in Foreign Affairs Committee
The analysis, based on official HMRC trade data, showed the UK exported £273m of vehicles to Azerbaijan last year, a 1,860% increase compared with the five-year period preceding the war.
Separate figures recorded an unprecedented increase in car exports to Russia from Azerbaijan.
It has raised existing fears that other products, not just luxury cars, may be finding their way from the UK to Russia through a back door.
Responding to a question on the Sky report during evidence to the foreign affairs committee of MPs, Ms Trevelyan said she expected companies to follow the clear guidance surrounding supply chains.
“It sets out very clearly that they shouldn’t be doing business, obviously, with Russia or potentially with a third country that might support Russia”, she said.
The minister added: “If it appears that there is a diversionary activity to sell goods that have a potential both dual use and value, then there is a need for those businesses to consider their position and for DBT (Department for Business and Trade) and now the Office of Trade team to have conversations with them.”
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She said companies legitimately may not have seen a risk, “and I think this is the challenge of whack a mole”, she concluded.
A Moscow showroom showing at least one model for sale
Carmakers have insisted they are not supplying vehicles to Russia.
Its lobby group, the SMMT, said they were committed to the rules and continuing that vigilance.
It added that manufacturers “would condemn any party that puts their commitment to compliance at risk”.
The UK car industry is facing a number of challenges, including the rising cost of raw materials, the global chip shortage, and the impact of Brexit. The sanctions on Russia are just one of the many challenges that the industry is facing.
The UK government is like a dog chasing its tail. First, they impose sanctions on Russia. Then, they worry about the impact of those sanctions on the UK economy. It’s like they don’t think things through before they act.
Oh, so the UK government is worried about the car industry? Well, I’m sure the car industry is worried about the UK government too. After all, the government has been doing everything it can to make it harder for the car industry to do business in the UK.
I’m sure the UK car industry will be able to weather the storm. The industry is resilient, and it has a long history of adapting to change. I’m confident that the industry will find a way to overcome the challenges it is facing.
The UK car industry is in trouble. The rising cost of raw materials, the global chip shortage, and the impact of Brexit are all taking their toll on the industry. The sanctions on Russia are just the latest in a long line of challenges that the industry is facing. I don’t see how the industry is going to be able to survive.
I don’t understand why the UK government is so concerned about the impact of sanctions on the UK car industry. The car industry is a relatively small part of the UK economy, and it is not clear that the sanctions will have a significant impact on the industry. I think the government is overreacting.
I don’t understand why the UK government is so worried about the impact of sanctions on the UK car industry. The car industry is a relatively small part of the UK economy, and it is not clear that the sanctions will have a significant impact on the industry.
The UK government is warning UK carmakers about the impact of sanctions on Russia. Ironic, isn’t it? The UK government has been one of the most vocal supporters of sanctions on Russia. Now, the government is worried about the impact of those sanctions on the UK economy.
The UK government is warning UK carmakers about the impact of sanctions on Russia. Ironic, isn’t it? The UK government has been one of the most vocal supporters of sanctions on Russia. Now, the government is worried about the impact of those sanctions on the UK economy.
The UK car industry is facing a number of challenges, including the rising cost of raw materials, the global chip shortage, and the impact of Brexit. The sanctions on Russia are just one of the many challenges that the industry is facing.
Oh, so the UK government is worried about the car industry? Well, I’m sure the car industry is worried about the UK government too. After all, the government has been doing everything it can to make it harder for the car industry to do business in the UK.
The UK government is like a dog chasing its tail. First, they impose sanctions on Russia. Then, they worry about the impact of those sanctions on the UK economy. It’s like they don’t think things through before they act.