Photo/Illutration Cars manufactured by Toyota Motor Corp. are ready for export at Nagoya Port on Dec. 7, 2021. It’s the port where the largest number of cars are exported from Japan. (Mari Endo)

The trade ministry announced on March 29 that the government is slamming the brakes on exporting luxury cars to Russia as part of Japanese economic sanctions in response to its invasion of Ukraine. 

The ban will take effect on April 5.

Under the measure, cars priced at more than 6 million yen ($49,200) when they pass through customs are prohibited from being exported to Russia.

As the ban is targeting Russian oligarchs, extremely rich and powerful people in the country who have rapidly accumulated wealth since the fall of the Soviet Union, the impact on Russia's economy is likely to be limited.

It is believed that the impact of the fresh sanctions on the Japanese economy will be minor as well. 

Although 40 percent of the value of exports from Japan to Russia comes from cars, their prices mostly don’t exceed 6 million yen and are not affected by the new sanctions. 

The government also announced on the day that it will ban exports of other luxury goods to Russia such as high-end watches priced at more than 40,000 yen, liquor and cigarettes.

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