November 23, 2022

Controlling Cash for Cars


Controlling Cash for Cars
A reliable, if not stylish, Lada. The Russian Life files

On Nov. 16, Russian President Vladimir Putin called on the country's automotive industries to ensure that the prices of cars remain low, despite the difficulties currently faced by the Russian economy.

In an address, Putin urged car manufacturers to make their products as affordable as possible to Russian families. The main issue is that most foreign companies have pulled out of Russia as a result of the invasion of Ukraine, and even foreign parts and raw materials for cars, trains, and aircraft have become harder to attain, thanks to increasing international isolation. All this creates a recipe for rising prices, even as consumers are tightening their belts.

Putin's response comes after the Russian government allocated some R20.7 billion ($343 million) to support demand for cars in June.

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