Georgia’s Vehicle Trade Restrictions and Their Impact on the Russian Market

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Georgia’s restriction on automobile shipments to Russia is expected to have a stabilizing effect on Russia’s domestic car market. This assessment comes from Dmitry Rogov, founder of RogovMobil, a company that specializes in turnkey car deliveries from South Korea, Europe, and Japan. Rogov spoke to socialbites.ca, a portal focused on car logistics, though the interview was delivered without any formal press release. He emphasized that most vehicles routed through Georgia were largely end-of-life or salvage units from the North American market, which had been refurbishable enough to be resold in Russia in various configurations.

Rovov explained that the Georgian ban would likely be almost imperceptible for his business, contrasting it with the direct Japanese restrictions that have drawn more attention. He noted that the cars traversing Georgia were often severely damaged from U.S. sources, sometimes reconstructed to pass as saleable units and then re-exported into Russia for resale. The parallel he draws with Armenia shows a broader regional pattern where Georgia serves as a transit corridor for these vehicles, shaping supply channels for the Russian market in ways that are not immediately obvious to end consumers.

According to the automobile expert, the share of vehicles entering the Russian market via Georgia remains modest, roughly around one percent. He added that the portion of such imports in the previous year and in the first half of the current year did not exceed two percent, indicating a relatively small but persistent flow that can be sensitive to regulatory shifts. This minor share, however, matters for sellers who rely on cross-border routes and for buyers who sometimes pursue cheaper, older units from foreign sources.

Since August 1, Georgia has placed tighter limits on the export of hybrid and electric vehicles to Russia, as well as American cars with engines larger than 1.9 liters. The decision to extend a ban on European-made cars emerged in mid-August, with expectations that it would take effect by late September. These moves, reported by regional media, have prompted changes in how dealers source inventory and how customers evaluate the total cost of ownership for different vehicle categories. Industry observers say the evolving policy landscape could influence loan terms, insurance costs, and the availability of certain models in the Russian market as buyers and sellers adapt to new constraints.

Earlier discussions among automotive specialists highlighted broader trends related to financing, including how loan costs can impact demand for both new and used vehicles in Russia. The net effect of Georgia’s measures may become clearer over the coming months as lenders adjust credit conditions and importers recalibrate their sourcing strategies to maintain supply. In this shifting environment, market players are watching closely how regional restrictions align with domestic policy and the practical realities of cross-border vehicle trade.

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