EU mulls Russia export ban on cars worth over 50,000 Euros

The EU is discussing a ban on exports of luxury vehicles worth more than 50,000 euros ($54,760) to Russia as part of its latest sanctions package, according to two diplomats familiar with the plan.

The proposed ban, which is set to be approved as early as Monday and could still change, would apply to models from several European car brands, including Audi, BMW, Mercedes, Ferrari and Porsche. The EU measure would also include boats and planes, as well as chairlifts and motorbikes worth more than 5,000 euros.

Many European carmakers have already voluntarily suspended sales to Russia.

The move is part of a broader fourth round of sanctions the EU is imposing because of Russia’s invasion of Ukraine.

The luxury car move carries more symbolic weight than economic bite. Russia represents about 2% of global sales for Europe’s major luxury vehicle brands, and robust global demand could compensate for lower exports to Russia, according to Bloomberg Intelligence.

Mercedes, BMW and Porsche and Audi parent Volkswagen AG already announced stops on exports to Russia earlier this month. 

“Given a strong order backlog for all the premium brands, I would expect any lost exports to Russia would be redirected to other markets,” Bloomberg Intelligence analyst Michael Dean said.