Latest news with #MaximSokolov
Yahoo
10-03-2025
- Automotive
- Yahoo
Russia moves to curb Chinese car imports with higher fees, tighter regulations
Russia is moving to curb the flow of Chinese car imports, a decision that could deal a blow to Chinese manufacturers and traders who have increasingly relied on the Russian market, the Financial Times reported on March 10. China has remained a key economic partner for Russia throughout the full-scale invasion of Ukraine, supplying Moscow with critical dual-use goods and helping to keep its economy afloat amind Western sanctions. Chinese car exports to Russia surged sevenfold in 2023 compared to 2022, as Western sanctions over Moscow's war against Ukraine cut Russia off from brands like Volkswagen, Toyota, and BMW. Automakers in China, facing anti-dumping measures in the U.S., EU, Canada, Turkey, and Brazil, found a lucrative market in Russia, the Financial Times wrote. Chinese brands now account for 63% of the market, while domestic Russian brands have fallen to 29%. In response, Russian authorities have introduced measures to slow the influx. In January, Moscow raised the "recycling fees" for most passenger cars to $7,500, more than doubling the rate set last September. The fees will continue rising by 10-20% annually until 2030. Russian regulators have also blocked the sale of a Chinese truck model over alleged safety violations and warned that more compliance checks may follow. The move comes amid an expected decline in new car sales in Russia, with projections of a 30% drop in 2025 if high interest rates persist, according to Avtovaz CEO Maxim Sokolov. The state-owned Avtovaz is Russia's largest carmaker, known for its flagship Lada vehicle series. The Russian Central Bank raised its key interest rate to 21% in October 2024 to curb inflation from wartime spending. Despite its growing economic ties with Russia, Beijing insists it remains neutral in Moscow's war against Ukraine and has even sought to position itself as a mediator. Read also: Russia's arms exports plunge by 47% since full-scale invasion's start, SIPRI reports We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Russia Today
25-02-2025
- Automotive
- Russia Today
Russian auto-giant cites billion dollar Renault re-entry price tag
Renault will have to compensate Russian carmaker AVTOVAZ up to $1.3 billion if it wishes to re-acquire its former business and re-enter the market, having previously quit the country, CEO Maxim Sokolov said on Tuesday. In 2022, AVTOVAZ purchased Renault's share in the joint enterprise for a symbolic sum of 1 ruble with an option to return within six years. Renault joined other foreign corporations that succumbed to international pressure and left Russia in the wake of the escalation of the Ukraine conflict in February 2022. A return is only possible if the French automaker reimburses the investments made in its absence to develop the business, Sokolov told journalists, specifying that they would top 112 billion rubles ($1.3 billion) in 2023-2025. 'They [the investments] exceed the average annual investment volumes that were made by the previous shareholder, Renault, in the early 2020s,' the top executive said. 'Therefore, it's clear that these investments will need to be reimbursed upon return,' he added, stressing that the price of return wouldn't equal the price of exit. Renault sold its 100% stake in Renault Russia and its 68% stake in Russian carmaker AvtoVAZ in 2022. Renault's assets were later transferred to Russian state ownership. In November 2022, Russia launched production of an updated version of the iconic Soviet-era car brand Moskvich at Renault's factory in Moscow, which used to produce cars under the Renault and Nissan brands. The car giant reported a write-down of over $2 billion as a result of the withdrawal from its second-biggest market.
