Although several Western nations, including Japan, have imposed economic sanctions against Russia after its invasion of Ukraine, Japan’s used car exports to Russia’s the East have increased threefold since around May.
Vladivostok Port in Russia’s Far East was packed with new and used cars transported from Japan and South Korea, many of which were SUVs, minivans, and large luxury models in June, despite the restrictions binding economic activities with the country.
Russian companies say they are flooded with orders from across the country and are often forced to restrict orders; hence, about 40,000 vehicles are currently yet to be exported from Japan.
A representative at a logistics company said it uses two cargo ships to transport 2,000 used cars from Japan each month. However, the company cannot increase its transport capacity because freight services are limited, and the port is filled with cargo.
Dmitriy Zabora, 38, CEO of used car importer Carwin PLC, based in Vladivostok, said the situation surprised him.
The company had to stop accepting orders for a while because prospects remained uncertain after Russia’s invasion of Ukraine began in February and was yet swamped with orders after its resumption in April.
According to Zabora, 17,000 to 18,000 used cars are transported to Russia monthly from Japan.
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