Japan has reinterpreted the wording of its sanctions and allowed Russians to import mild hybrid cars, according to a report from regional Russian publication RBC Primorye released earlier today. The change permits the purchase of mild hybrids from manufacturers like Audi, Honda, Mazda, Mercedes, Mitsubishi, Nissan, and Suzuki at auctions in Japan. Mild hybrid cars use electric motors to assist their gasoline engines but cannot operate solely on electric power.
The export ban has reportedly been lifted for vehicles such as the Honda Fit, CR-Z, and Insight, Nissan Day-Z, Suzuki Solio, Ignis, Swift, Hustler, Alto, Xbee, and Wagon, Mazda Flair and Carol, Mitsubishi Delica D:2, Delica Mini, and eK X, Mercedes E-Class and C-Class, Audi A3 and Q3 F3. Notably, the “easing” applies only to specific engine models — not all versions of these cars.
The import of used Japanese cars is a key industry for Vladivostok, the largest city in the Russian Far East — and the center of Primorsky Krai, a Russian region that shares a land border with North Korea and China. A recent report by The Insider revealed that international sanctions have completely reshaped the local car trade, with large businesses keeping themselves afloat through gray market import schemes — along with outright smuggling.
Dmitry Klataevsky, director of Japan Transit, which imports cars from Japanese auctions to Vladivostok, told RBC Primorye that the adjustments concerning mild hybrid imports are not a true relaxation of sanctions but rather a “reinterpreting” of the existing regulations. He pointed out that while there was no initial export ban on mild hybrids, sales stopped due to Japanese brokers and exporters being overly cautious.
“There was initially no ban on exporting 'mild' hybrids. When issuing this document and introducing these sanctions, they did not consider the fact that these vehicles would also be banned. Due to the cautious nature of Japanese brokers and exporters, who were worried about this, they decided to stop trading anything with the 'hybrid' label or anything potentially referred to as a ‘hybrid’ in the documents. Now, due to the drop in sales, the Japanese have started to re-examine, looking for additional options and loopholes. They reviewed the situation and found that it is indeed possible to export them,” commented Klataevsky.
He added that Japanese brokers managing vehicle documentation for export companies have already confirmed that mild hybrid exports have resumed.
“This will definitely have a positive impact on the market. The average consumer will have more choices. These are new models, an expanded list of what you can purchase. These are good cars that were popular before the sanctions. However, we would, of course, like to see greater easing and even lifting of the sanctions because the market needs it now. Otherwise, China will take an even larger share than it already has,” noted the businessman.
The Insider reviewed the impact of Chinese cars flooding the Russian market in a piece earlier this year.
In 2023, Japan banned the export of both new and used cars with engine capacities over 1.9 liters to Russia as part of a control order aimed at restricting goods that strengthen Russia's industrial base. Hybrids and electric vehicles also fell under the export restriction. The move hit the brakes on a used-car trade that had once come close to $2 billion annually.
RBC Primorye noted that the sanctions had a clear effect — in October 2023, passenger car exports to Russia from Japan had decreased by 46.8% compared to the same period in 2022. However, the customs checkpoint in Vladivostok recently returned to pre-sanction levels, processing nearly 27,000 vehicles in September, most of which came from Japan.