Japanese ban slows down trade in used cars from Russia

Japan's ban on the export of most used cars to Russia has slowed down a trade of about $2 billion a year that had been flourishing in the shadow of sanctions against Moscow.

Reuters reports.

After the outbreak of the Great War, demand in Russia for used cars from Japan jumped sharply after global automakers ceased operations in the country.

Last year, amid tightening sanctions, Russia bought more than a quarter of Japan's used car exports at an average price of almost $8,200. In 2020, the Russian Federation accounted for about 15% of Japan's used car exports.

It was expected that the total volume of used car trade from Japan this year could be about $ 2 billion.

According to the Russian analytical agency Avtostat, more than half of the 303,000 used cars imported by Russia in the first eight months of this year came from Japan.

However, in early August, the Japanese government banned the export of cars to Russia, cutting off a lucrative channel for a network of brokers and smaller ports, especially Fushiki, an export hub on the Sea of Japan.

The SV Alliance company, which exports used cars to Russia, notes that business has dropped by about 70%.

Author - Olena Madiak, 02/10/2023