UK car industry rejects claim it's benefiting from sales to Russia

One Baku-based car broker claimed it could source Rolls-Royces and Bentleys from the EU

Reports say cars are entering sanctioned state via brokers in neighbouring nations, as exports to Azerbaijan soar 2000%

New Rolls-Royce and Bentley luxury cars are being exported to Russia in defiance of trade sanctions, Sky News reports.

These sanctions, imposed on Russia following its 2022 invasion of Ukraine, ban the export of cars to the country. However, cars can still be exported to countries bordering it, including Azerbaijan, from where they're reportedly being sold into Russia.

The claim is based on an analysis of HMRC trade data. This shows that last year, the UK enjoyed a huge increase in the export of cars to Azerbaijan – up almost 2000% compared with the five-year period preceding the war to £273 million. Each of the vehicles was worth more than £100,000. Analysis of UN trade data then revealed an unprecedented increase in car exports from Azerbaijan to Russia.

UK car exports to Azerbaijan have continued with, last January, £43m worth being sent to the country, making it the UK's 12th biggest foreign market by value for cars. 

Sky News also found data suggesting sharp rises in UK car exports to Armenia, Georgia and Kazakhstan – each also a former member state of the Soviet Union.

Autocar asked industry body the Society of Motor Manufacturers and Traders (SMMT) if it could explain Azerbaijan's sudden appetite for UK-made luxury cars. It said: "UK vehicle exports to Azerbaijan have increased due to a number of factors, not least a flourishing economy."

This argument is somewhat undermined, however, by Azerbaijan's GDP per capita not having increased for the past decade. It's currently ranked 84th in the world, while the UK is ranked 27th.

While the HMRC and UN trade figures alone don't prove that British cars are being exported from Azerbaijan to Russia, Sky News sources have told it that Russians prefer to use this neighbouring state as a route for them.

Autocar has discovered that car brokers in Baku, the Azerbaijani capital, are advertising British luxury cars. One claimed it has partnerships all over the world and could supply new Rolls-Royces and Bentleys from the EU. 

Rolls-Royce said: "Rolls-Royce Motor Cars ceased production and supply of cars for the Russian market in late February 2022, before international trade sanctions were put in place. In the meantime, governments have implemented far-reaching sanctions, which we fully comply with and support.

"Retail sales of cars to clients are managed by our global dealer network, comprised of independently owned and operated businesses. Our global dealer network is contractually obliged to follow all applicable national and international legal regulations, including those relating to export control. If any new Rolls-Royce motor car has been imported into Russia since late February 2022, this has been done so without the knowledge or support of Rolls-Royce Motor Cars."

Bentley said: "We are committed to full compliance with all current and future trade sanctions, and there is no evidence to suggest a lack of compliance with existing sanctions or indeed a change of sales trend in Azerbaijan."

The UK government's Foreign, Commonwealth and Development Office told Autocar that it was working with EU and US partners to shut down "circumvention routes" in countries where it has seen "spikes" in the trade of sanctioned goods with Russia.