Japan will ban the export of luxury cars and goods to Russia from April 5

According to foreign media reports, Japan's trade ministry said on March 29 that Japan will ban the export of high-end cars and other high-end goods to Russia as the latest response to the situation in Russia.

Last week, Japanese Prime Minister Fumio Kishida promised more sanctions against Russia at the G-7 summit. The new items on the export control list cover 19 categories, including cars worth more than 6 million yen ($48630), as well as jewelry, watches, cosmetics, wine and works of art worth more than 40, 000 yen, the ministry said in a statement. The new list will take effect on April 5. Marine engines worth more than 1.3 million yen, motorcycles worth more than 600000 yen and grand pianos worth more than 200000 yen will also be banned from being exported to Russia, the ministry said.

An official from Japan's Ministry of economy, Trade and Industry said the inclusion of luxury cars on the embargo list may have some impact on Japanese exports, but the impact is small. He added that most of the Japanese cars sold to Russia are sold for less than 6 million yen.

In 2021, Japan sold 358 billion yen worth of cars to Russia, making them Japan's main export to Russia, accounting for about 41.5 per cent of Japan's total exports to Russia. Last year, Japanese exports of auto parts to Russia were 100 billion yen, accounting for 11.6 per cent of total exports to Russia. Chassis and bodies worth more than 2 million yen will also be banned from being shipped to Russia, the department said.

Prior to this, Japan has banned the export of high-tech products such as semiconductors, sensors and communications equipment to Russia. The new embargo list will bring the number of prohibited products to Russia to about 310.

Mr Kishida also announced another plan to revoke Russia's MFN status, which could lead to higher tariffs on Russian imports and a ban on imports from Russia. However, Japan has taken a more cautious approach to energy supplies from Russia, highlighting the strategic importance of oil and gas projects in eastern Russia, in which Japanese governments and companies have stakes.