-
Alcaraz withdraws from Cincinnati Masters with wrist injury
-
Kgatlana strikes as South Africa reach WAFCON quarter-finals
-
SpaceX revenue jumps 92% in first earnings report, but shares slide
-
Pakistan close on series-levelling win against West Indies
-
US eyes Hormuz deal 'today or tomorrow' as ship sinks in Red Sea
-
Paramount CEO says politics fueling Warner Bros. merger battle
-
SpaceX revenue jumps 92% in first earnings report
-
Trump's sale of access to Truth Social raises eyebrows
-
New commissioner Berg wants to take MLS to 'next level'
-
SpaceX rocket stage expected to slam into Moon
-
Colombian ex-guerrillas fear for future under hardline president
-
US hopeful Hormuz strait deal will be done 'today or tomorrow'
-
Tsitsipas comeback continues with Montreal first-round win
-
Michigan primary puts Democratic divide on the ballot
-
Swiatek fends off Bejlek to reach Toronto third round
-
South Africa captain Kolisi to make Test return in Argentina
-
Reusser romps to overall lead at Tour de France Femmes
-
Cuba's famed resilience comes at a growing mental cost
-
McDonald's reports slower US sales in 2nd quarter
-
Swiss Reusser wins Tour de France Femmes time-trial
-
Arsenal step up bid to sign Newcastle's Guimaraes: reports
-
Hundreds flee homes after Guatemala's Fuego volcano erupts
-
Gazans hold mass funeral for those killed during war
-
Thousands pay tribute to Italian football legend Baresi
-
WHO pleads for more support to tackle Ebola outbreak
-
Oil drops, stocks hit records on hopes of Hormuz opening
-
Oil drops, stocks gain on hopes of Hormuz opening
-
Renard returns as Ivory Coast coach
-
Infantino faces nervy times to see if challenger emerges
-
Italian garbagemen help recover lost 1 mln euro lottery ticket
-
Greece gains ground against blaze near Athens
-
EU nations patch things up after Ceuta migration discord
-
Oil turns lower, stocks gain on hopes of Hormuz opening
-
US hopeful Hormuz strait deal will be done 'today or tomorrow' after ship hit
-
World Bank warns developing countries to embrace AI or be left behind
-
Infantino's problems mount as Wenger and key FIFA ally turn on him
-
'No decision' on Mudryk future after Chelsea return: Alonso
-
Oil edges higher, stocks gain as investors eye political risks
-
China draws up safety rules for autonomous vehicles
-
Man Utd sign reported record £20mn sponsorship deal for training kit
-
Wenger says scrapping Infantino's World Cup plan was "absolutely necessary"
-
Stokes reveals England coaching ambition
-
Spain confronts EU migration hawks in tense Ceuta talks
-
Cargo ship hit after Trump insists Iran talks could reopen Hormuz today
-
Firefighters hope to contain blaze on Athens outskirts
-
BP profit soars as Mideast war roils energy prices
-
Heatwave divides rich and poor of upmarket Seoul
-
Most stock markets gain, while oil prices edge up after plunge
-
Drone strike on Moscow region kills 5
-
Most stock markets gain, while oil prices edge up after latest plunge
Armenia funnels US cars to Russia, in sanctions' evasion
A kilometres-long caravan of trailers loaded with used cars meanders on a dusty road leading to a customs terminal in the Armenian city of Gyumri.
Russia's invasion of Ukraine and unprecedented Western sanctions levied on Moscow have created a business opportunity for used car dealers like 31-year-old Yaroslav Kolchenko, who sips a coffee in the sun near the queue.
The US and the EU have banned the export of vehicles to Russia but cars can still be cleared through Armenia, and Kolchenko stands to gain.
"Today even wealthy Russians only have access to used American cars brought to Russia via Armenia," he told AFP.
The native of Saint Petersburg described the arduous journey for vehicles coming to Russia in the wake of sanctions.
"Used, damaged or cheap cars are bought at online auctions in the United States," he explained.
They are then "transported by sea to the Georgian port of Poti, repaired, transported to Armenia for customs clearance, and then taken to Russia by land via Georgia".
The parallel exports are generally seen as a legal grey area and contradict the spirit of sanctions.
- 'Pretty profitable' -
The new and lucrative route helps explain growing Ukrainian and Western concerns that Russia's economic partners in the ex-Soviet Caucasus region or Central Asia are aiding Moscow bypass sanctions.
Armenia fell under the spotlight last year when President Vahagn Khachaturyan said Russia would "withstand sanctions" and vowed closer economic ties with "brotherly" Moscow.
The small and poor Caucasus country has a free trade agreement with Russia and clearing cars at Armenian customs is much cheaper compared to Russia.
This has helped Armenia emerge as a hub for re-exports from the United States to Russia after Western car dealers closed dealerships.
Kolchenko's business partner, Andrei, who gave his first name only, said they have been in the business since the war started last February.
"We sold eight cars in April alone and plan to expand the business, which is pretty profitable," he said.
By way of example, Andrei said one car he just purchased for $13,000 would be sold in Saint Petersburg for at least $23,000 with customs costs of spend around $5,000.
Those figures help explain why Armenia's trade turnover with Russia skyrocketed since Moscow's all-out invasion of Ukraine.
Official statistics show a 2.4-fold surge in exports that reached a record $2.4 billion last year.
Car re-exports grew last year by 170 percent, and more than 450,000 cars -- mostly from the United States -- were taken to Russia in the first quarter of 2023.
- 'Sanctions could be evaded' -
In March, the US departments of justice, treasury and commerce said in a joint report that Armenia was among the countries used as transhipment points to Russia.
The EU in June introduced new measures to its 11th sanctions package against Russia to clamp down on the evasion of restrictions, specifically closing loopholes on the re-exportation via third countries of sensitive technology like microchips.
Prime Minister Nikol Pashinyan told AFP this month that complying with Western sanctions without angering a key economic partner was a difficult balancing act.
"We're in close contact and cooperation with the EU special envoy and the representative of the US to ensure that we act as a responsible member of the international community," he said.
"At the official level, we do not have any objections or complaints from European or American partners, nor from Russia."
Still Yaroslav said that "what is happening here in Gyumri shows that any sanctions could be evaded."
"Of course, the Americans are not happy about it, and they will probably try to cause trouble but they will fail. You can't isolate a country as big as Russia," he said.
Standing nearby in the shadow of a wilted acacia tree, Andrei smiled in agreement.
"A they say, water will always find new channel if you block a river."
K.Hassan--SF-PST