Photo: Lexus
The Russian war in Ukraine still causes massive consequences for the Eastern European state, and here is another blow for the country that started the invasion on February 24, 2022. The Japanese government has just decided to extend the ban on luxury cars exported to Russia starting August.
The ban targets all new and used cars with engines over 1900 cc, but also hybrid, plug-in hybrid, and electric passenger cars, as well as large vehicle tires, which will not be sent to Japan starting August 9. Further details on the ban will be disclosed a week before it goes into effect.
The export control order banning exports of goods to the Russian state, that would strengthen the country's industrial base, has been confined by the Minister of Economy, Trade and Industry, Yasutoshi Nishimura.
Last May, in Hiroshima, state heads met for the G7 summit. It was the moment they collectively agreed to keep tech and equipment that could help Russia's attacks on Ukraine away from the Eastern European state.
The restrictions that are set up in Japan are in line with the measure taken by the European Union. New sanctions, this time regarding 1900-cc vehicles, have been in force since June 23.
It is the strategy that the Japanese are using in their intent to reduce economic ties with the state that started the war on February 24, 2022, and also slowing slowing down on war whatever might help Russia to continue the war. The use car exports from Japan into Russia have been on the rise for months, after many carmakers and states decided to reduce or halt the cars export to the Russian market.
The figures of used cars imported into the state doubled and eventually more than tripled compared to the same period of the previous year, according to Reuters. The data from the finance ministry's customs bureau reveals that the incoming sum amounted to some 29 billion yen, translated into approximately $205 million.
Japan started out on the restrictions road last year, in April, implementing a ban on exporting luxury cars worth more than 6 million yen ($42,510). A ban on the export of trucks weighing over 5 tons was added in June 2022.
Yet, there are luxury cars that still make it to Russia through dealerships who call on intermediaries to sell them vehicles that customers ask for.
Materials such as steel, plastic, and electronic parts are also banned for export because there is a risk they could be diverted to military use in Russia.
Furthermore, carmakers have been halting operations in Russia. That means that the local car market is making efforts to compensate. Lada has, indeed, seen improved figures.
Before the war, about 100,000 cars were sold there every month. The car industry is now spiraling down, with the figures going down to around a quarter of that sales volume, pointing to a massive consumers' weakness.
The export control order banning exports of goods to the Russian state, that would strengthen the country's industrial base, has been confined by the Minister of Economy, Trade and Industry, Yasutoshi Nishimura.
Last May, in Hiroshima, state heads met for the G7 summit. It was the moment they collectively agreed to keep tech and equipment that could help Russia's attacks on Ukraine away from the Eastern European state.
The restrictions that are set up in Japan are in line with the measure taken by the European Union. New sanctions, this time regarding 1900-cc vehicles, have been in force since June 23.
It is the strategy that the Japanese are using in their intent to reduce economic ties with the state that started the war on February 24, 2022, and also slowing slowing down on war whatever might help Russia to continue the war. The use car exports from Japan into Russia have been on the rise for months, after many carmakers and states decided to reduce or halt the cars export to the Russian market.
The figures of used cars imported into the state doubled and eventually more than tripled compared to the same period of the previous year, according to Reuters. The data from the finance ministry's customs bureau reveals that the incoming sum amounted to some 29 billion yen, translated into approximately $205 million.
Japan started out on the restrictions road last year, in April, implementing a ban on exporting luxury cars worth more than 6 million yen ($42,510). A ban on the export of trucks weighing over 5 tons was added in June 2022.
Yet, there are luxury cars that still make it to Russia through dealerships who call on intermediaries to sell them vehicles that customers ask for.
Materials such as steel, plastic, and electronic parts are also banned for export because there is a risk they could be diverted to military use in Russia.
Furthermore, carmakers have been halting operations in Russia. That means that the local car market is making efforts to compensate. Lada has, indeed, seen improved figures.
Before the war, about 100,000 cars were sold there every month. The car industry is now spiraling down, with the figures going down to around a quarter of that sales volume, pointing to a massive consumers' weakness.
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