By Kantaro Komiya

TOKYO (Reuters), – Japan has announced that it will stop the Russian export of expensive cars and luxury goods in its latest reaction to Russian invaders of Ukraine.

A partial ban on Russiabound auto products was imposed after Fumio Kirishida, Prime Minister, made an agreement to place additional sanctions on Russia last week at the Group of Seven Summit.

According to a Ministry of Economy, Trade and Industry statement, 19 new categories will be added to the Export Control List. They include cars valued at over 6 million yen (48,630), jewellery, watches, alcohol, and art that are more than 40,000yen.

According to the ministry, Russia’s exports of boats engines and motorcycles exceeding 1.3million yen as well as grand pianos valued over 200k won’t be permitted.

Japan announced its ban on luxury exports from Russia on March 16th. This was followed by steps taken by the United States of America and European countries to impose sanctions against Russia in response to their invasion of Ukraine. Russia claimed it was conducting a “specially military operation” within its south-eastern neighbour.

Japan, in collaboration with the U.S. & the EU joins the sanction to Russian oligarchs & the ruling class,” said a ministry official at a press conference.

‘CERTAIN IMPACT’

Officials said that luxury vehicles may have an impact on Japanese exports but it is not significant. This was due to the fact that most Japanese cars exported to Russia sell for under 6 million yen.

According to data from government trade, Japan exported 358 billion Japanese yen of automobiles to Russia in 2021. This made it Japan’s largest export product to Russia. It accounted for 41.5% Japan’s total exports to Russia.

Last year, the exports of parts for cars amounted to 100 billion yen (11.6%) of Russia’s total exports. According to the ministry, Russia will ban exports of cars and chassis worth more than two million yen.

Japan already bans high-tech Russian exports such as semiconductors.

A ministry official stated that the new items would bring Russia’s total export blacklist to around 310.

Kishida announced that Russia will be revocation of its most-favoured country trading status. This could result in higher tariffs for imports as well as an embargo on certain Russian imports.

Japan also has frozen the assets of over 100 Russian people and organizations, but it’s considering expanding financial regulations for Japan-based cryptocurrency exchanges.

Japan however has maintained a careful balance regarding Russia’s energy sources. This includes highlighting the strategic importance to Japan of eastern Russian oil and gas developments in which both the Japanese and the government have stakes.

($1 = 123.3800 yen)