Japan to ban Russia-bound export of luxury cars, goods from April 5 By Reuters

© . FILE PHOTO: Plastic letters that read “Sanctions” are placed in front of the colors of the Russian flag in this illustration, taken Feb. 25, 2022. REUTERS/Dado Ruvic/Illustration By Kantaro Komiya TOKYO () -Japan bans the export of high- end of cars and other luxury goods to Russia in its latest response to Russia’s invasion of Ukraine, the Commerce Ministry said Tuesday. The partial ban on Russia-bound auto items, which account for more than half of Japan’s exports to Russia, came after Prime Minister Fumio Kishida pledged at a Group of Seven summit last week to increase sanctions on Russia. lay. The new items on the export control list, which will take effect from April 5, include 19 categories, from cars worth more than 6 million yen ($48,630) to jewelry, watches, cosmetics, spirits and art worth more. than 40,000 yen, the Ministry of Economy, Trade and Industry said in a statement. Exports to Russia of boat engines worth more than 1.3 million yen, motorcycles worth more than 600,000 yen and wings worth more than 200,000 yen will also be banned, the ministry said. Japan’s ban on the export of luxury goods to Russia, first announced by Kishida on March 16, followed steps by the United States and European countries to impose sanctions on Russia for its invasion of Ukraine. Russia says it is conducting “a special military operation” in its southern neighbor. “In cooperation with the US and the EU, Japan joins the sanction against Russian oligarchs and the ruling class,” a ministry official told a media briefing. ‘CERTAIN IMPACT’ The inclusion of luxury cars on the list “may have some impact” on Japanese exports, but not a major one, the official said, adding that Japanese cars sold to Russia tend to be models sold for less. than 6 million yen are sold. In 2021, Japan sold 358 billion yen worth of cars to Russia, making it Japan’s top exporter to Russia, equivalent to 41.5% of Japan’s exports there, according to government trade data. Exports of auto parts last year were worth 100 billion yen, or 11.6% of total exports to Russia. Shipments of chassis and car bodies worth more than 2 million yen to Russia will also be banned, the ministry said. Japan has already banned the export of high-tech products to Russia, such as semiconductors, censors and communications equipment. The new items bring the total to about 310 items on Russia’s export blacklist, the ministry official said. Kishida has also announced plans to revoke the trading status of Russia’s most favored nation, which could lead to higher tariffs and a ban on certain imports from Russia. Japan has also frozen assets of more than 100 Russian individuals and organizations as it considers extending financial regulation to Japan-based crypto-currency exchanges. However, Japan has walked a fine line on its energy supply from Russia, emphasizing the strategic importance of oil and gas projects in Eastern Russia in which the government and Japanese companies have interests. ($1 = 123,3800 yen)

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