The European Commission announced on Friday a ban on the supply of all electric and hybrid vehicles to Russia as part of the implementation of its 11th package of Russian sanctions.

It is also extending the ban on export of luxury cars, both new and used vehicles, with an engine capacity of more than 1,900 cubic meters, Kallanish notes. Additionally, the package is introducing a complete ban on the supply of certain types of auto components, which is likely to affect the domestic output of EVs in Russia.

The embargo comes into effect from 23 June, the EC says in a press release.

However, official representative of the Russian foreign ministry Maria Zakharova has downplayed the new sanctions on her Telegram channel. She believes the expansion of the ban on the export of cars will not lead to anything other than “the inevitable growth of the domestic auto industry, including the use of Chinese components.”

Meanwhile, Russian automotive company Avtotor announced the start of construction of its new foundry and mechanical Plant. The complex will be an integral part of the cluster of auto components, which is being created to organise the production of EVs and other alternative powertrains, as well as the manufacturing of auto components. The company is yet to comment on whether the new sanctions will delay its plans.

Last week, Russian authorities said that the country is likely to exceed its EV production targets in 2023 to at least 7,500 electric cars, with the volume more than tripling to 25,000 units next year.

Russian battery electric vehicle sales increased last month to 880 units, which is nearly eight times higher than the volume in May 2022. In January-May 2023, Russians purchased 3,352 new BEVs, which is around 3.5 times more than in the same period a year ago.

The country has a fleet of roughly 26,000 EVs – both new and second-hand. Among the best-selling models last month, were premium imported models including the Audi e-Tron, Mercedes-Benz EQS and the Porsche Taycan. Other brands included Volkswagen, Tesla, BMW, Russia’s Evolute and Chinese brands Voyah, BYD, Zeekr, Hongqi and Skywell. There were over 70 models available in the Russian market.