Retail in Asia


Japan announces ban on exports of luxury goods to Russia

Japan will ban the export of high-end cars and other luxury goods to Russia in its latest response to the Russian invasion of Ukraine, the trade ministry said on 29th March. The embargo will be effective 5th April.

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The new items on the export control list span 19 categories, from cars worth more than six million yen (US$48,630) to jewellery, watches, cosmetics, liquor and art priced at more than 40,000 yen (US$327.18), the Ministry of Economy, Trade and Industry said in a statement.

The inclusion of luxury cars on the list “may have a certain impact” on Japanese exports, but not a sizable one, the official said, adding Japanese cars sold to Russia are mostly models that sell for less than 6 million yen.

In 2021, Japan sold 358 billion yen (US$2.92 billion) worth of automobiles to Russia, making it Japan’s main export item to Russia, equivalent to 41.5 percent of Japan’s exports there, according to government trade data.

Reuters reported that exports of car parts were worth 100 billion yen (US$817 million), or 11.6 percent of total exports to Russia, last year. Shipments of chassis and automobile bodies worth more than two million yen (US$16,357.30) to Russia will also be banned, the ministry said.

The new items will take the total to about 310 items on the Russian export blacklist, the ministry official said.

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“We will work with the international community, including the Group of Seven nations, to implement tough sanctions,” Koichi Hagiuda, Japan’s economy, trade and industry minister, said at a press conference.