It British SkyNews saw a noticeable increase in car exports to Russia’s neighbors from 2022, when Ukraine was invaded by Russia. This was followed by all kinds of sanctions to make trading with Russia virtually impossible. But neighboring countries now act as ‘intermediate countries’ through which British cars still enter Russia.
The most notable example is Azerbaijan. In the graph below you can see that hardly any cars were sold from the United Kingdom to Azerbaijan until 2022. But as soon as exports to Russia plummeted, huge exports to Azerbaijan took their place. Car exports have increased by as much as 1,860 percent compared to before the Russian invasion of Ukraine.
It seems unlikely that there is suddenly so much more need for cars in Azerbaijan, and that is not the case. What seems? Car exports from Azerbaijan to Russia also exploded. That country has no trade restrictions with Russia, so it is an easy way for British manufacturers to avoid their own sanctions.
Sky has no hard evidence, because once the cars have left the United Kingdom, it is no longer possible to trace what happens to them. But anonymous sources tell the channel that Azerbaijan is a popular country for wealthy Russians to be able to buy British cars. The same construction would apply to German cars, but via Kyrgyzstan.
It seems that the richer Russians in particular do not feel much of the European sanctions. Like this writes the New York Times that a high-quality restaurant in Moscow still obtains French oysters via a detour. And a more expensive Russian supermarket chain still sells French champagne and Italian truffles.
Correspondent Olaf Koens: “Sanctions against Russia have always existed. The Russians have an objection to this. For example, the latest iPhone could always be bought in Moscow, even though it was not officially on the market in Russia. It is only for the rich Russians, because you pay a lot extra for it. The middle class has to make do with the Chinese cars that are now only on the market in Russia.”
Dutch companies are also guilty
And Dutch companies also appear to be participating in the circumvention, according to figures from Statistics Netherlands. For example, before the war in Ukraine, the Netherlands imported oil products, coal, gold, jewelry, steel and iron from Russia. That is no longer allowed. It is striking that the Netherlands imports much more from Russia’s neighboring countries than before the Russian invasion of Ukraine. Kazakhstan in particular stands out.
In 2021, the Netherlands imported 476 million euros worth of goods from Kazakhstan. In 2023 that was 2,781 million euros, almost six times as much.
Before the war, the Netherlands exported machines, luxury goods and technologies to Russia. This has virtually come to a standstill since the war. But Dutch exports to Russia’s neighboring countries are increasing. This can be seen in the graph below.
This cannot only be the result of increased demand in those countries, sanctions lawyer Yvo Amar previously told RTL News. The growth is so great that he has doubts about it. “It is certainly also an indication that circumvention is taking place.”
Do the sanctions on Russia make sense? Russia is not that bothered by it at all, says correspondent Olaf Koens. “Yes, the Russian economy took a hit when Western sanctions started in 2022. But Russia has a strong economy. It is rich in raw materials, such as oil. And if the West no longer wants to buy this, there are plenty of others countries that want to trade with Russia.”
We explain why Russian President Putin is not afraid of the sanctions against Russia in the video below:
2024-03-17 10:10:57
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