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Russia's Rostec chief suggests protective measures on assembled car imports

Published 08/21/2024, 04:06 AM
Updated 08/21/2024, 04:12 AM
© Reuters. FILE PHOTO: CEO of Rostec state corporation Sergei Chemezov attends a meeting with Russian President Vladimir Putin in Moscow, Russia, December 28, 2023. Sputnik/Gavriil Grigorov/Kremlin via REUTERS /File Photo
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MOSCOW (Reuters) - Sergei Chemezov, the head of Russia's vast Rostec corporation, said that he was grateful to Chinese automotive makers for filling the gap created by the exit of Western brands but that the state could consider protective measures on assembled cars.

Rostec is by far Russia's most powerful weapons and automotive player with a stake in Russia's largest truck manufacturer Kamaz, and was a controlling shareholder of the largest car manufacturer Avtovaz, formerly controlled by the French Renault (EPA:RENA).

Western carmakers abandoned the Russian market after Russia sent thousands of troops into Ukraine, ceding Chinese car makers a major chunk of the Russian car market. Brand new Chinese cars are now everywhere on Moscow's roads.

"After the departure of Western brands, there was a shortage of cars on the market, and it had to be covered somehow. By the way, we should say thank you to the Chinese," Chemezov said in written answers to a Reuters interview request.

"When the Germans, the Japanese, and the Koreans showed the Russians 'the finger', the Chinese auto industry supported us," Chemezov said, adding that the state would find a solution.

© Reuters. FILE PHOTO: CEO of Rostec state corporation Sergei Chemezov attends a meeting with Russian President Vladimir Putin in Moscow, Russia, December 28, 2023. Sputnik/Gavriil Grigorov/Kremlin via REUTERS /File Photo

"The growth of Chinese car brands, indeed, attracts attention," Chemezov said. "Today there is no shortage of cars on the market. I am confident that the state will find a solution. The import of assembled cars can be regulated with protective measures."

He said that foreign car manufacturers' projects with a high level of localization, on the contrary, should receive state support.

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