Russia may ban car imports if West imposes new sanctions

Russia may impose restrictions or a ban on vehicle imports from Western countries, if the U.S. and EU impose additional sanctions on Moscow, Reuters reports quoting the Vedomosti.

The paper says that the proposals have already been sent to Putin for consideration but no decision has been made yet.

The new ban, however, would not apply to foreign automakers' production inside Russia. Ford (NYSE:F), Volkswagen (OTCQX:VLKAY), Renault (OTC:RNSDF), Toyota (NYSE:TM) and Hyundai (OTC:HYMLF) all have production facilities inside the country.


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Comments (18)
  • Shaduc
    , contributor
    Comments (3005) | Send Message
    This ought to help Japanese automakers!
    18 Aug 2014, 03:44 AM Reply Like
  • Tdot
    , contributor
    Comments (9158) | Send Message
    Well, the article does mention Toyota, which like Ford, VW, Renault, and Hyundai, has production facilities inside Russia.


    Obviously Russia's main target is the actual importation of vehicles from Europe and the US. It isn't clear where Japan and Korea stand on the Ukraine matter, although Russia's relationship with Japan has been strained at best for over a century.


    But Russia might instead turn to other less-sanctions-impose-y States like China, which has its own fast-growing automotive industry, with no small help from those Western countries. And Russia and China have been conducting joint military exercises lately, which bodes well for free-trade arrangements between them.


    Interestingly, US automakers Ford and GM might not really mind that much if Russia turns to China for imported vehicles. China can build essentially the same US-brand vehicles as Europe does, but for much cheaper labor rates, and therefore potentially higher profitability.


    In any case, such international hissy-fits are usually short term setbacks, which tend to evaporate as cooler heads and reason prevail.
    18 Aug 2014, 06:54 AM Reply Like
  • Matt Raket
    , contributor
    Comments (184) | Send Message
    Russia also banned the import of agricultural products from Japan, so would probably do the same for Japanese cars. Maybe Europe should ban the import of oil and gas from Russia. The country would be bankrupt within a year. Ofcourse it would be hard to replace all Russian gas with imports from abroad (NYSEMKT:LNG) and more own production (Norway, The Netherlands).
    18 Aug 2014, 08:21 AM Reply Like
  • leopardtrader
    , contributor
    Comments (3800) | Send Message
    Russia GAS to Europe is existential threat. It is a no-go area and Russia have been supplying gas to Europe even during the worst of cold wars. Any gas game here could immediately turn global economy into recession worse than 2007/8. Everyone understands this except some "fools" in power in some countries.


    Economic sanction to such country as Russia if not for PR stunt value is the stupidest decision ever. Any sanction not backed by UN and other economies will never work. Iran "appear" to have worked because of cooperation of China and Russia though there is essentially nothing to show it worked. Russia is the largest country on earth and the richest endowed. It is also a civilized with as high IQ. So to think that economic sanctions on Russia could force them quickly surrender in Ukraine and allow NATO to station there is the most foolish foreign policy decision ever. Remember without Russian cooperation USA will not be able to successfully engage in many of these external military adventures. Before bombing or droning any country Russia must assure that no anti-aircraft system exists. That was true in Iraq, Libya..but was not in Syria. Russia refused to supply Iran with SAM 300/400 just for Israel to maintain that military edge. In return recently Israel never condemned or voted for the condemnation of Russian annexation of Crimea.


    The Russia-phobia in our society could push them towards East and South. These people constitute over 70% of the world population and eventually control the power. We need Russia to help contain the East/South instead of the opposite. Russia is and never being US enemy.
    18 Aug 2014, 08:43 AM Reply Like
  • Mr Cliff Fiscal
    , contributor
    Comments (186) | Send Message
    Hi Matt. Banning Russian Gas is definitely a no go area. Gazprom were specifically excluded from EU sanctions, basically because the EU, as dumb as they are, do not want to commit suicide. Some EU countries get ALL their gas from Russia. Try, for example, telling these countries to do without Russian gas!
    Estonia 100% of their gas consumption is from Russia
    Finland 100%
    Latvia 100%
    Lithuania 100%
    Slovakia 98%
    Bulgaria 92%
    Czech Republic 77.6%
    Greece 76%
    Hungary 60%
    Winter will be with us in a few months!
    The Ukraine get 66% of their gas supplies from Russia too.
    18 Aug 2014, 09:20 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    (NASDAQ:TSLA) won't be affected. I know of no efforts yet to sell Teslas to Russians.
    18 Aug 2014, 11:03 AM Reply Like
  • Mr Cliff Fiscal
    , contributor
    Comments (186) | Send Message
    There are approximately 2.7 million new vehicles sold each year in Russia. Although Ford (NYSE:F), Volkswagen (OTCQX:VLKAY), Renault (OTC:RNSDF), Toyota (NYSE:TM) and Hyundai (OTC:HYMLF) all have production facilities inside Russia most have only a limited model range under production meaning import quantities of these marques is still considerable. Should sanctions be imposed, Europe, the U.S and Japan will undoubtedly suffer. It would for example be goodbye to 50,000 Mercedes and 50,000 BMW vehicle sales each year (based on 2013 sales figures). Chinese and South Korean vehicles may well sell considerably better, and it would be interesting to see if Ford (NYSE:F), Volkswagen (OTCQX:VLKAY), Renault (OTC:RNSDF), Toyota (NYSE:™) would decide to up production locally in Russia, requiring ironically increased investment, in an attempt to reduce sales losses.
    18 Aug 2014, 09:01 AM Reply Like
    , contributor
    Comments (397) | Send Message
    It is incredibly stupid of Europe and the United States to favor the Ukrainians. Ukraine gained its eastern areas and Crimea by getting these from the Soviet Union. These are not Ukrainian areas. What happened to self determination? If these areas decide to return to the homeland of Russia, they have the right to do so. Further, Russia will simply pivot to China, the enemy of all nations that value freedom and human rights. Russia's future should be with Europe and the United States, not the technocratic tyrants of Beijing.
    18 Aug 2014, 09:32 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    "China, the enemy of all nations that value freedom and human rights." That's pretty jingo-istic. All central governments hate freedom and don't think twice about human rights violations. In case you hadn't noticed, the feds have been busy eroding your freedoms here in the US for decades and this no longer feels like the "land of the free". We're living in a police state only one signature away from martial law at all times. The POTUS, the congress, and the supreme court do pretty much whatever they want and ignore the founding documents that are supposed to restrict their activities in the interests of the freedom of the people.
    18 Aug 2014, 11:01 AM Reply Like
  • smurf
    , contributor
    Comments (6370) | Send Message
    19 Aug 2014, 05:59 AM Reply Like
  • bibol11
    , contributor
    Comments (293) | Send Message
    If they do that. All we need to do. Is to tell any auto company that does business in the US. That if they export any auto parts to Russia. That they will be banned from exporting anything into the US. Vital parts will be produced back into the US that we are short of.
    18 Aug 2014, 04:19 PM Reply Like
  • Soursmash
    , contributor
    Comments (12) | Send Message
    Poor Russia. Almost 100 years of revolution after revolution and they still can't get it right- while managing to shoot themselves in the foot. For all their triumphs in the arts and sciences...
    18 Aug 2014, 05:42 PM Reply Like
  • Eric Dee
    , contributor
    Comments (2210) | Send Message
    Let 'em eat cake and all drive Yugo rejects!
    18 Aug 2014, 07:14 PM Reply Like
  • smurf
    , contributor
    Comments (6370) | Send Message
    Last I checked, Russia neither a flourishing car industry nor a huge demand, so let them ban western imports. I'm sure GM, Ford and others will be able to withstand a not-so-crushing blow like this.


    Vlad is just throwing everything against the wall to see what might stick.
    19 Aug 2014, 06:03 AM Reply Like
  • Mr Cliff Fiscal
    , contributor
    Comments (186) | Send Message
    GM sold 257,000 vehicles in Russia during 2013, their sixth biggest market. Ford sold 107,000 vehicles. The overall yearly demand for 2.7 million vehicles is not inconsiderable, but I'm sure China & South Korea will be more than willing to plug the gap.
    19 Aug 2014, 07:06 AM Reply Like
  • crazty4tennis
    , contributor
    Comments (1265) | Send Message
    Glad to hear that Russia is imposing these sanctions. Build your factories here so our people have work and pay taxes so Russia's economy thrives. Very smart thinking on Russia's part. Like that.
    19 Aug 2014, 09:12 AM Reply Like
  • formerly ford fan
    , contributor
    Comment (1) | Send Message
    Well, this is mine third ford and mine second ford mondeo and the last one. i am not buying a ford "made in russia" . FORD you still have time to review your policy, or disapear as a good western brand and become a cheap asian brand.
    1 Sep 2014, 10:36 PM Reply Like
  • Tdot
    , contributor
    Comments (9158) | Send Message
    Assembly of the Mondeo for Western Europe and other regions has moved from Genk, Belgium to Valencia, Spain. Those assembled in Russia are basically for the Russian market. There may have been some Russian Mondeos exported to the west from Russia during the production transition from Genk to Valencia.


    Enjoy your next Opal or whatever.
    2 Sep 2014, 05:34 AM Reply Like
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