Sky report highlights ‘molesting’ challenge to Russia sanctions, minister warns UK carmakers

The minister responsible for UK sanctions on Russia has told British carmakers to check their supply chains after Sky News analysis showed luxury models were making their way to Moscow showrooms via the former Soviet country.

Foreign Affairs Minister Anne-Marie Trevelyan told a committee of MPs that report This is a prime example of the “whack-a-mole” challenge posed by Moscow’s trade controls imposed on Ukraine as a result of its invasion.

Sky reported on Tuesday morning that while British cars were being exported directly to Russia After falling to zero, car exports to Russia’s neighbors, especially Azerbaijan, increased accordingly.

Analysis based on official HMRC trade data shows that Britain exported £273m of cars to Azerbaijan last year, an increase of 1,860% compared with the five years before the war.

Separate data showed an unprecedented increase in Azerbaijani car exports to Russia.

This has sparked fears that other products, not just luxury cars, could be shipped from the UK to Russia through the back door.

During her testimony before MPs’ foreign affairs committee, Trevelyan said in response to questions about the Sky report that she wanted businesses to follow clear guidance on supply chains.

“It makes it very clear that they clearly should not be doing business with Russia or potentially with third countries that may support Russia,” she said.

The minister added: “If there is diversion activity for the sale of goods with potential dual use and value then these businesses will need to consider their position and the DBT (Department of Business and Trade) and now Trade Office teams will be in dialogue with them.”

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Companies may not realize the risks, she said, “I think it’s a whack-a-mole challenge,” she concluded.

Carmakers insist they will not supply cars to Russia.

Its lobby group SMMT said it was committed to complying with the rules and continued to be vigilant.

It added that manufacturers “will condemn any party that puts its compliance commitments at risk”.