Public corporations will be banned from purchasing imported automobiles

Public corporations will be banned from purchasing imported automobiles

Kommersant – According to Kommersant newspaper, the Russian government is preparing a law, completely prohibiting public corporations from purchasing imported automobiles, heavy machinery and metallurgical products. However, the prohibition has an exception: on condition that a company proves that the aforementioned products are not manufactured in Russia, it will have the right to obtain the products by leasing.

Sergei Litvinenko from PricewaterhouseCoopers is of the opinion that the new implementation will work in favour of companies making production in Russia, in commercial vehicles segment.

On the other hand, the Russian companies taking on major construction and oil projects have concerns about the quality of Russian commercial vehicles. A source from Transneft summarises the situation as follows:

“The quality of Kamaz’s execution of orders fluctuates from year to year, it’s unstable. While purchasing Volga or Mercedes is a matter of personal ambition for someone in Moscow, it may be a matter of life and death for a constructor in Evankia or Yakutsk.”