A look at Russia’s border logistics and car market pressures

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Border crossings continue to face logistical bottlenecks. At the SPIEF session titled “Sovereign Logistics of Russia,” the head of the Russian Federal Customs Service, Ruslan Davydov, discussed the ongoing challenges, according to a correspondent for socialbites.ca. He highlighted the strain that traffic and infrastructure pressures place on the whole system, noting that these issues are not resolved by the Customs Service alone, but are tied to broader infrastructure development priorities that lie elsewhere in the government and private sectors.

Davydov underscored a key point: the pace and quality of infrastructure construction do not rest with the Federal Customs Service. He pointed out that successful alleviation of bottlenecks will require coordinated action across ministries, regional authorities, and transportation operators, with investment decisions and project timelines driving real improvements on the ground.

There was also discussion about how monetary policy and transport costs shape the domestic market. If both the base rate and logistics expenses ease, it could make locally produced vehicles more affordable for consumers, potentially shifting demand in the automotive sector toward domestically manufactured models and altering the pricing landscape in the near term.

During the session, it was noted that AvtoVAZ raised prices by roughly 11 percent this year. The reasons cited included complicated logistics chains, fluctuations in exchange rates, and the higher cost of borrowed capital. In practical terms, Davydov cited a concrete example: transporting a Lada Vesta by car carrier currently costs around 40 thousand rubles per vehicle, a figure that underscores how logistics costs directly feed into consumer prices and company profitability in the current market environment.

Earlier reports indicated that AvtoVAZ had explored the possibility of converting Lada vehicles to electric powertrains, signaling a strategic pivot toward electrification as part of its product roadmap and potential long-term cost considerations.

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