The latest official data has revealed an astonishing trend of British luxury cars being exported to states neighboring Russia, with a total value of £26 million in February alone. According to HM Revenue & Customs, Azerbaijan has emerged as the 17th biggest destination for UK cars, surpassing traditional export markets like Ireland, Portugal, and Qatar.
This surge in exports to Azerbaijan coincides with the imposition of sanctions on the export of cars to Russia, which has resulted in a complete halt of UK car exports to Russia. As a result, neighboring states such as Kazakhstan, Kyrgyzstan, Georgia, and Azerbaijan have seen a significant increase in British car imports. While it is difficult to track the final destination of these shipments, there is substantial evidence suggesting that these countries are being used as channels to smuggle banned goods into Russia.
The latest data from HMRC also reveals that the average value of cars exported to Azerbaijan in the past three months was over £115,000. This makes Azerbaijan, a relatively small and underdeveloped economy, one of the most high-value luxury car markets in the world, alongside countries like Switzerland, Luxembourg, and Saudi Arabia. In the two years since the invasion of Ukraine and the imposition of sanctions, the total value of British car exports to Azerbaijan has reached an astonishing £523 million, compared to only £58 million in the preceding two years.
The Society of Motor Manufacturers and Traders (SMMT), Britain’s motor lobby group, has denied any connection between this surge in exports and Russian sanctions, citing domestic factors in the Azerbaijani economy as the reason for the increase. A spokesperson for SMMT stated, “UK carmakers strictly adhere to all trade sanctions and would condemn any party that puts this commitment at risk. The rise in car exports to Azerbaijan can be attributed to various factors such as new model launches, pent-up demand, and a growing domestic market for British luxury cars.”
However, United Nations data suggests that while the quantity of cars officially exported to Russia remains low, Azerbaijan is funneling a significant number of cars to Central Asia, contrary to SMMT’s claims. Since the invasion of Ukraine, car exports from Azerbaijan have increased by 4,800%, with most of the cars destined for countries like Kazakhstan, Kyrgyzstan, Georgia, and the United Arab Emirates. According to UK government sources, these countries are commonly used as conduits for goods into Russia.
Moreover, it is not just cars that have seen a surge in exports to Central Asia and the Caucasus. Components and machinery used in the production of weapons have also seen a considerable increase in exports. During a recent visit to Kyrgyzstan, Foreign Secretary Lord Cameron acknowledged that Russia is using Central Asian countries to bypass sanctions and bolster its military capabilities.
In response to these developments, the SMMT spokesperson said, “We have always acknowledged the possibility that third parties could exploit vulnerabilities in the sanction regime, and manufacturers take every measure to prevent this. Any UK-built vehicle found in Russia without authorization has been illegally obtained. This is a complex issue that requires a coordinated global effort to address, as it involves various products from multiple sectors in numerous countries that are subject to sanctions.”
