Japan’s move to bar most used-car sales to Russia slammed the brakes on a trade nearing $2 billion annually that had boomed in the shadow of sanctions over Ukraine elsewhere, according to trade data and market participants. In early August, Japan’s government banned exports of all but subcompact cars to Russia, cutting off a lucrative backchannel in trade in used Toyotas, Hondas, and Nissans for a network of brokers and smaller ports, especially Fushiki, an export hub on the Sea of Japan. The move wiped out the Russian market, sparked car prices in Japan to fall, and sent brokers scrambling to redirect vehicles to other regions.

The ban, which includes hybrid and electric models and gasoline and diesel vehicles with engines over 1,900cc, is expected to expand to other models in the future, keeping in step with punitive European and U.S. sanctions on Moscow over its invasion of Ukraine. The restrictions are also aimed at boosting the effectiveness of those embargoes by ensuring that Tokyo’s measures align with similar ones in Moscow.

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Japan banned luxury car exports to Russia in April and imposed an export ban on heavy trucks in June. Dealers can still sell smaller models like the Toyota Yaris and Honda Fit to Russia, but those shipments account for only a fraction of Japan’s overall exports.

The lull in Russian demand has been brutal for companies like Toyama-based SV Alliance. Through July, the two-year-old company sent an average of 6,500 used vehicles to Vladivostok monthly. Now, the business has dropped by about 70%. “We have to find other markets. Otherwise, we’ll be out of business,” SV Alliance logistics coordinator Olesya Alekseeva said.

Meanwhile, the drop in car prices has been a boon for battery recycling firm 4R Energy, which is working on a joint project with Nissan to make affordable used electric cars. The Japanese companies plan to sell the cars in markets such as China and India.

Japan’s move will have a ripple effect on second-hand car markets in Japan and other countries that use Japanese cars. While it’s too soon to know how the change will impact dealers and consumers in Russia, it has already rattled second-hand-car buyers in Japan.