Japanese used car exports to Russia on the rise Japanese media: Sanctions against Russia exist in name only | blog posts

Since the outbreak of the Russo-Ukrainian war, the number of used cars exported from Japan to Russia has increased rather than decreased, forcing Japanese media to question the Kishida government’s so-called sanctions in name only.

“Nikkei News Network” quoted the trade statistics of the Ministry of Finance of Japan. In October this year, the amount of used cars exported to Russia increased by 3.4 times compared to the same period last year, reaching 34.5 billion yen, far exceeding the figure before the outbreak of the Russia-Ukraine war, making it Japan’s largest exporter of used cars for five consecutive months.

Japanese Prime Minister Fumio Kishida. AP images.

The report said that the export volume alone from April to October was 151 billion yen, which exceeded the total amount in 2021 (106.9 billion yen), and the export volume also reached 1,205,660 vehicles, up 25% year-over-year. . “Reuters” also described that in August this year, Japan accounted for about 80% of used cars imported from Russia.

“Nikkei News Network” analysis behind the three main causes:

1. A shortage of new cars. Japanese automakers such as Toyota, Nissan and Mazda have withdrawn from the Russian market one after another, and Japanese automakers’ factories in Russia have been closed for more than six months. Even as Russian auto giant AvtoVAZ has restarted its production, economic sanctions imposed by Europe and the United States have made it difficult to import parts. Compared to the hot second-hand car market, Japan’s new car exports to Russia have dropped to almost zero since May, and the number of new cars Russians can buy locally will naturally suffer.

Japanese used cars. Video surveillance images.

Secondly, the depreciation of the yen and the appreciation of the ruble. Affected by the Federal Reserve’s interest rate hike, the yen depreciated rapidly against the US dollar. In contrast, Russia kept the ruble’s exchange rate high by linking it to energy. Monthly increase of 50%.

Secondly, geographical factors. After the Russia-Ukraine conflict, there was a logistical chaos in Europe and used cars could not be delivered in the original way. However, Japan can ensure that the used cars can reach Russia smoothly via the shipping route from Toyama, Japan to Vladivostok, Russia.

Russian President Vladimir Putin. AP images.

The report said that whether it is a new car or a second-hand car, the Japanese government bans the export of models worth more than 6 million yen to Russia. The Japanese government has explained that limiting the export of “luxury goods” means putting pressure on the Russian oligarchs who support Putin’s regime. In other words, except for a few high-end cars, most Japanese used cars don’t meet this standard.

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