Russia may ban car imports if sanctions persist

Moscow - Russia may tighten retaliatory sanctions against Western nations to include a ban on imports of cars, among other things, if the United States and the European Union impose additional sanctions on Moscow, Vedomosti daily newspaper said on Monday.

Following Russia's stand off over Ukraine, Western nations imposed sanctions on Moscow including on its financial and energy sectors, and put dozens of Russians close to President Vladimir Putin on a sanctions list.

Imported vehicles accounted for 27% of sales of passenger cars in the first half of 2014, for trucks imports accounted for 46%, and 13% for buses, according to Vedomosti.

Russia, which denies allegations it, is arming separatist rebels in eastern Ukraine, may fully or partly ban imports of cars, the Vedomosti newspaper said, citing sources.

The new ban would not apply to foreign automakers' production inside Russia, the paper said. Ford, Volkswagen, Renault, Toyota and Hyundai all have production facilities inside Russia.

The paper added that proposals for new measures had already been sent to Putin for consideration but that no decision had been taken to prepare any new sanctions yet.

New trade restrictions are possible in the event Western nations impose additional sanctions on Moscow, the paper added.

Russia has imposed a ban on certain agricultural imports from the European Union, the United States, Australia, Canada and Norway.

It has also said the government could introduce protective measures in aircraft, shipbuilding and automotive industries.

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David Van Schalkwyk 2014/08/18 02:57:49 PM
I do not think that is the best idea in the world Russia... Have you seen the cars you people make? Not very nice...
Willem Proost 2014/08/18 04:06:56 PM
That's Puttin for you cutting of his nose to spite his face.Good luck to Russians,they definitely will need it
Andre James 2014/08/18 04:24:46 PM
Nine out of the ten most sold models in Russia in 2010 were domestically produced, with Avtovaz's Lada models topping the list. Marussia brand, produced by Marussia Motors, became the first modern sports car and the first supercar produced in Russia. The Marussia B1 was launched on 16 December 2008 in the New Manezh Hall in Moscow. On 10 September 2010 the first Marussia Motors show room opened in Moscow. Another ambitious Russian project is Yo-mobile, a city car that can burn both gasoline and natural gas and is connected to a pair of electric motors. The car was introduced on 13 December 2010 in Moscow, a product of a joint venture between Yarovit, a producer of trucks based in St. Petersburg, Russia and the Onexim investment group, headed by Mikhail Prokhorov, who is the leader and financier of the project. These sanctions will hurt the luxury car market most significantly American, German and French brands like Chev, Mercedes, BMW, VW/Audi and Renault.
Sterling Ferguson688 2014/08/18 05:29:57 PM
@Sam,the automatic Transmission was developed in the US along with other features. GM can't make enough cars, fast enough for to be shipped to China. The Russians are crazy about the heavy duty US cars and trucks. The US cars don't require a lot of maintenance and these cars are easy to fix when they break down.
Mark Russell 2014/08/18 07:31:17 PM
Russia has thought this through nicely. EU on the Other hand has botched their position through blind compliance with US demands. Can't oppose one of your trade partners and then cry when they out strategize you and your economy crumbles. Now europe will pay for their stupidity and childishness.