Chechen leader Ramzan Kadyrov has caused a stir by posting a video on Telegram that shows a Tesla Cybertruck with a machine gun mounted on top. This raises the question of how Kadyrov was able to obtain the Cybertruck, given that Tesla does not ship to Russia. Experts suggest that the vehicle may have been re-sold to Kadyrov by the original owner via an EU country, taking advantage of parallel trade to circumvent sanctions. Such practices have been a headache for the EU in recent years.
The theory of sanctions evasion through the EU is supported by a 2023 AFP report that describes how cars purchased at online auctions in the US find their way to Russia through countries like Armenia, Kazakhstan, Georgia, and Turkey. These countries have been under scrutiny for parallel trade and re-exports, which exist in a gray area of legality. While not strictly illegal, these practices go against the spirit of sanctions.
In response to this issue, the EU ratified export legislation in 2023 that includes a “no-Russia” clause. This clause prohibits EU exporters from re-exporting a limited number of goods to or for use in Russia when selling to non-EU countries. However, experts point out that where there are sanctions, there will always be attempts to circumvent them. The longer sanctions are in place, the more creative pathways will emerge to evade them.
The situation also poses a challenge for Tesla and its founder, Elon Musk. While Musk vehemently denied gifting the Cybertruck to Kadyrov, compliance experts believe that Tesla’s general counsel and compliance team must be scrambling to address this situation. Export control laws would typically ban the Cybertruck from being sent to Russia, as Tesla is a US company, and Russia is subject to sanctions due to its actions in Ukraine.
In conclusion, the video of Kadyrov driving a Cybertruck with a machine gun mounted on top has sparked speculation about how he obtained the vehicle. The theory of sanctions evasion through the EU seems plausible, given previous cases of parallel trade and re-exports. As the EU has ratified export legislation with a “no-Russia” clause, exporting vehicles like the Cybertruck to Russia appears to be in contravention of European regulations. This incident poses a challenge for Tesla and serves as a reminder of the ongoing efforts to circumvent sanctions.