Putin asks govt to propose prompt measures to support auto industry amid Western sanctions

Russian President Vladimir Putin on Thursday asked his government to come up with steps to support the country’s car industry which has suffered one of the most significant blows due to sanctions imposed by the West. The Kremlin leader discussed Russia’s auto industry and a slump in sales with several members of the government and noted that the situation “is not easy” after “partners of Russian car factories, despite their long-term commitments, either suspended deliveries or announced their withdrawal from our market”.  

According to Kremlin, Putin said, “I ask the government to tell us in more detail what prompt measures are being proposed to support the auto industry and stabilize the domestic market”.

The Russian President also noted that the volume of the output of the automobile industry is already impacted and has witnessed a steep drop compared to 2021. It is to mention here that car sales in Russia have collapsed since the Kremlin leader announced the “special” military operation in Ukraine in late February. Putin said that he now views “two tasks as the most important now: The first is to ensure the work of automobile plants in Russia, their supply with the necessary components, to maintain employment, and teams of qualified specialists”.

“The second task, the Russian auto industry must ensure a sufficient supply of cars, primarily passenger vehicles, prices for which have risen sharply this year,” the Kremlin leader said.

“I would like to recall that about a million and a half cars were sold in Russia during each of the past two years,” he emphasised.

Russia launches new 'sanction-proof' car

Putin’s meeting on the country’s automobile industry came just days after a Russian car manufacturer, Lada created a “sanction-proof” car to avoid international sanctions amid war. Sky News had reported that Lada was launching its Granta Classic Sedan with all Russian-made components. However, it would not have an anti-lock braking system, modern seat belts or satellite navigation. The car is priced at 675,900 roubles or £9,500, which is the cheapest on the Russian market. Russia’s car industry was heavily dependent on imports but in the aftermath of the war, the Western sanctions have driven a surge in costs.  

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