ArmInfo. Exports of cars from Armenia to Russia have soared since last year. This is reported by the Financial Times.
According to the source, in January 2023, the export of cars from Armenia to Russia have soared "from $800,000 worth of vehicles in January 2022 to just over $180mn worth of vehicles in the same month this year." At the same time "In January 2022, Armenia imported $2.8mn worth of cars from the US. But a year later, that number soared to $29.5mn. Since then, the rate has continued to climb. In April this year, Armenia imported $34mn worth of US cars. "The EU also swiftly banned exports of vehicles valued above EUR 50,000 and recently expanded this to include all larger cars with an engine size of about two litres or more. Many foreign car companies have sold off their production plants and shut dealerships inside Russia. Some have also pulled out of the market even though they are not subject to direct export controls," writes the Financial Times But the Russians have another way to buy a Western car - and Armenia is helping in this.
According to intermediaries and buyers the newspaper spoke to, cars arrive primarily from the US via the Black Sea port of Poti in Georgia, brokers and buyers said. Many are then brought to Armenia for customs clearance, as the country shares a customs-free trade bloc with Russia.. The city of Gyumri is a key hub from where the vehicles head north to Russia by road, crossing through Georgia again. "This scheme, US-Georgia-Armenia-Georgia-Russia, is not the only one. There are so many," said Pavel, a new trader passing through Gyumri from St Petersburg who declined to give his real name. "These schemes have spread like the roots of a tree." According to buyers and intermediaries, most used cars are bought inexpensively at auctions in the United States, after which they are repaired in Georgia or Armenia. This allows you to sell the car more expensive in Russia and avoid possible problems with local customs officers due to European sanctions. "Russian customers for used cars can also be found at the Erebuni market on the outskirts of Yerevan, with the snow-capped peak of Mount Ararat floating above. On a recent Saturday, a group of Russians of all ages walked between the lines of cars, looking to buy cars both for themselves and to sell. The market at Erebuni has existed for decades, but far more Russians are now coming in, one market worker said. The same goes for the protracted import routes in general, according to Alexander, the buyer in Gyumri, the source notes."
