Minister warns UK carmakers as Sky report highlights ‘whack a mole’ problem over Russia sanctions

The minister answerable for the UK’s sanctions in opposition to Russia has informed UK carmakers to verify their provide chains after Sky News evaluation urged luxurious fashions had been discovering their method to Moscow showrooms by way of ex-Soviet states.

Foreign Office minister Anne-Marie Trevelyan informed 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 international locations neighbouring Russia, most notably Azerbaijan.

The evaluation, primarily based on official HMRC commerce knowledge, 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 conflict.

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 a again door.

Responding to a query on the Sky report throughout proof to the overseas affairs committee of MPs, Ms Trevelyan stated she anticipated firms to comply with the clear steerage surrounding provide 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 stated.

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 stated firms legitimately might not have seen a danger, “and I think this is the challenge of whack a mole”, she concluded.

Carmakers have insisted they don’t seem to be supplying automobiles to Russia.

Its foyer group, the SMMT, stated they had been dedicated to the principles and persevering with that vigilance.

It added that producers “would condemn any party that puts their commitment to compliance at risk”.