Japan To Expand Sanctions For Russia Starting August 9, These Cars Are On The Export Ban List

Coolray became Geely's most popular model overseas and entered the Top 5 market sales of the SUV-B segment in Russia, Saudi Arabia, Qatar, Kuwait, Philippines, and Mongolia. (Doc. Geely)

JAKARTA - On August 9, Japan will increase sanctions against Russia for its invasion of Ukraine. Japan will extend the ban on luxury car exports to Russia so that it will cover all new and used vehicles including hybrid and electric vehicles, and ICE cars with 1900cc or larger engine capacities.

In addition to the items above, quoted from Reuters, July 28, Japan also prohibits the export of a number of items that can be used for military purposes, including steel, plastic products, and electronic parts.

This broader act of restriction follows similar steps taken by Japan's allied countries. It is known, in May when the G7 summit in Hiroshima, the head of state of the G7 had agreed to cut off the supply of technology and equipment to Russia that could support the country's war efforts. This move was taken after more than a year since Russia invaded Ukraine.

In April last year, the Japanese government also banned the export of luxury vehicles to Russia. With this expanded ban, Japan will only be able to export a few small cars to Russia.

Although leading automakers such as Toyota and Nissan have stopped their manufacturing activities in Russia, several other Japanese automotive manufacturers are still selling cars in the country. However, in some cases, these cars are often imported in parallel, with most of them being produced in China not in Japan and sold through a used-diler car program.

If later imposed a ban on the export of electric and hybrid cars to Russia, it appears that Japanese automakers will face new challenges in facing Russia's automotive markets.

On the other hand, Chinese car manufacturers will have a golden opportunity to control the market share left by allied brands. Before the sanctions were imposed, Chinese car exports to Russia tripled to 140,000 units in early 2023, and it was recorded that Chinese car manufacturer Geely had the most sales increase by 88 percent.