Beginning August 1, the export and re-export of American vehicles from Georgia to Russia has been banned, according to the revenue service of the Ministry of Finance.
This change results from the enforcement of the latest sanctions package. Further restrictions are due to be implemented from September 26, which will affect the export and re-export of vehicles imported from the European Union.
As per the imposed sanctions by the USA and the European Union, re-export/export to Russia and Belarus of cars imported from the United States is strictly prohibited on Georgian territory starting from August 1. This prohibition will extend to vehicles imported from the European Union from September 26, in compliance with the 11th package of imposed sanctions.
Revenue service clarification is being sought by bm.ge to answer outstanding queries and the responses will be shared upon receipt.
In a written response to bm.ge on July 13, the Revenue Service clarified that until September 25, cars could be exported if the export agreement was signed before June 25. This provision was part of the 11th sanctions package. These restrictions apply specifically to the import of vehicles with an engine capacity exceeding 1,900 cubic centimeters into Russia, with certain exceptions.
Passenger cars rank as the third-largest export commodity from Georgia to Russia. During the first six months of 2023, Georgia exported 3,786 cars to Russia, valued at $53 million, representing an annual increase of 274%.
As of June 2023, the distribution of auto exports is as follows:
Kyrgyzstan: $236 million, 5,840 cars at an average price of $40.4k each, growth rate 1673%Kazakhstan: $236 million, 13,916 cars at an average price of $17k each, growth rate 694%Azerbaijan: $226 million, 14,206 cars at an average price of $16k each, growth rate 75%Armenia: $185 million, 10,235 cars at an average price of $18k each, growth rate 1159%Russia: $53 million, 3,786 cars at an average price of $14k each, growth rate 274%Tajikistan: $16 million, 1,435 cars at an average price of $11k each, growth rate 307%Belgium: $11 million, 232 cars at an average price of $48k each, decline of 24%Ukraine: $7 million, 519 cars at an average price of $14k each, decline of 78%United Arab Emirates: $6 million, 86 cars at an average price of $75k each, growth rate 6%Turkey: $4 million, 219 cars at an average price of $20k each, growth rate 234%.