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21 Apr, 2023 14:51

G7 Russian export ban would hurt Japan – media

A range of businesses are expected to suffer if a new embargo is imposed  
G7 Russian export ban would hurt Japan – media

An embargo on used car deliveries to Russia would harm Japanese businesses if the G7 follows through with plans for more stringent sanctions, the Kyodo news agency reported on Friday.   

While exports of luxury cars to Russia have been barred by Western restrictions, supplies of secondhand vehicles have thus far gone unsanctioned. Last year, Japanese deliveries of used cars surged to their highest level since January 2009, according to government data. 

But this may change as Ukraine’s allies are reportedly considering a near-total embargo on exports to Russia. Officials in G7 countries are finalizing a proposal which could be put forward at the US-led group’s next summit, scheduled for Japan in May.  

The latest plan could expand the trade embargo to used cars, tires, cosmetic items, and clothing, Kyodo reported, citing a government source.  

According to other media outlets, Tokyo is concerned that the proposed ban on exports of secondhand cars to Russia could trigger a domino effect, causing damage to regional Japanese economies and businesses beyond the automotive sector.   

A potential embargo could result in a drop in demand for Japanese vehicles, which in turn would lead to job losses through a decrease in production. The automotive industry supports many small and medium-sized businesses in Japan, such as parts suppliers, dealerships, and service centers, which could all suffer.

For more stories on economy & finance visit RT's business section

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