How will the auto industry live under sanctions? The expert explained:

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Will the Russian industry and in particular the car industry survive under the sanctions? On the FinAuto-2022 forum, the independent expert Sergey Burgazliev tried to answer this question. He noted that in the near future, the number of sanctions against Russia could exceed 7 thousand, and compared this situation with Iran, which has been under sanctions for more than 40 years, the number of which reaches 3616.

Burgazliev recalled that Russia was cut off from the US and European financial systems and caused problems in logistics. According to the expert, the effect of these restrictions, which significantly undermine the economy, could last a long time – at least a year. The financial, technology and logistics sectors will suffer the most.

As far as exports are concerned, restrictions apply even to electronics and semiconductors manufactured in Asia, but with the help of American equipment and technologies, that is, the “Asian scenario”, according to Burgazliev, is not a panacea.

Car factories KAMAZ (pictured) and URAL were among the first to support an early move to simplified engineering regulations so that cars can be produced without scarce imported components

Car factories KAMAZ (pictured) and URAL were among the first to support an early move to simplified engineering regulations so that cars can be produced without scarce imported components

At the same time, he recalled that domestic programs for the localization of cars have not achieved their goals, despite the established institutions of “advanced development”. Russia uses imported parts because they don’t have them or are of poorer quality.

But there are still tools to change the situation in a positive direction. Like Iran, Russia can learn to circumvent some of the restrictions imposed, the Avtostat expert quotes the conclusions. First, this will require the establishment of transit companies and the introduction of barter arrangements – Russia, which has valuable resources, has something to offer for exchange. Second, it is possible to create an electronic currency with the countries with which Russia trades.

  • In the meantime, the Ministry of Industry and Trade is preparing a new technical regulation that will allow the production of simplified versions of cars, and AvtoVAZ has already announced the timing of the appearance of such cars.
  • “Driving” can be read in Viber.
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