Consequences of sanctions
Sanctions imposed by the United States against AvtoVAZ in September have resulted in banks in friendly and hostile countries being largely refused to work with the Russian automaker, the company’s president, Maxim Sokolov, told a hearing in the Federation Council. reported Interfax agency.
According to Sokolov, both payments from AvtoVAZ and payments to the company for export materials were blocked. The head of the manufacturer stated that banks in friendly countries began to do this due to fear of secondary restrictive measures.
“When it comes to export products, foreign banks block payments to both us and AvtoVAZ.
<…> Unfortunately, this happens everywhere, not just in non-hostile places. “Taking into account the risk of secondary sanctions from almost all foreign banks,” the company president explained.
As Sokolov noted, the blocking was followed by an increase in the number of foreign suppliers anxiously refusing to cooperate.
Expansion of production
He also noted that the company plans to start mass production of Lada Largus electric cars in the first half of 2024. At the same time, the production of the pilot series of these models, which will consist of approximately 30 vehicles, is expected to start in mid-December.
According to Sokolov, we are talking about commercial vehicles, but, as a rule, they are issued to subsidiaries or the AvtoVAZ structure itself. stated that It will not be available at dealers..
The automaker’s chief executive said last week that the company could cut this year’s production plan by 10% due to sanctions in September that disrupted logistics and financial chains again. According to him, AvtoVAZ planned to produce 400 thousand cars by the end of 2023. In January – October this year, the plant has already assembled 293 thousand Lada cars.
Sokolov also said that the company could sell 8.3% fewer cars in November than in October, when AvtoVAZ sold a record number of cars (40.9 thousand) in the last 10 years. But he said the company plans to sell 1.7 times more cars in November 2023. Until November 2022.
Head of concern on the sidelines of the exhibition “Transport of Russia – 2023” registeredThere was actually “a repeated failure of logistics, financial chains and much more” due to sanctions by the US Treasury.
“This was a very serious incident, it was not a pointless shot at the economy and our business, so to speak. But we endured it no matter what,” Sokolov said.
US sanctions
On September 14, information appeared on the website of the US Department of Justice that the American government had expanded the list of sanctions against Russia. The restrictions affected 20 individuals and more than 100 legal entities, including AvtoVAZ and Moskvich.
The head of AvtoVAZ later said that the concern would not stop working, while also admitting possible difficulties in the supply of some components.
“[Трудности]Moreover, of course, it will not be in the area managed by AvtoVAZ, but where we are talking about unforeseen risks arising from unreasonable actions of partners. And even not directly in relation to AvtoVAZ, but in relation to second and third level suppliers: subcomponents, raw materials, materials that are not subject to sanctions in principle,” he commented on the sanctions against the company.
The company has been included in the Americas SDN (Specially Designated Countries List). The entry requires blocking all company-owned assets located in the United States and banning American persons from any interaction with sanctioned entities. Specifically, you cannot receive money, goods, or services from them (and provide them to them or for their benefit).