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Russian Automobile Industry Reels From Turkey Sanctions; Production May Be Impaired

Posted 8 years ago by QuikrCars | 152 views

According to sources, Russia has imposed embargo on food products in Turkey and charter flights between the countries have been stopped. These are among other retaliatory steps taken in response to the downing of the Su-24 Russian jet on the Syrian border on the 24th of November. Ankara had earlier claimed that Turkish airspace was violated by that jet.

Russian authorities have already started ringing the alarm bells with regard to huge struggles faced by car manufacturers in Saint Petersburg pertaining to the receipt of supplies from Turkey. This was because of the economic sanctions imposed on Ankara by Moscow over the downing of the jet mentioned earlier. According to deputy governor of Saint Petersburg, Sergei Movchan, incase this situation remains the same, automobile companies will have to halt production. Even though the Turkish light industry’s consumer products are not included in the sanctions, there were huge checking procedures employed for all products coming in from Turkey. This has led to unimaginable delays in deliveries of the same.

Toyota which has its factory in Saint Petersburg, has not received car components over the last couple of weeks. This is being attributed to its failure to land a customs certificate for importing these parts. Russia’s leading car brand Lada and Renault-Nissan have already complained to customs authorities about their inability to get supplies. A Lada factory that assembles Renault-Nissan cars went into limbo for five hours owing to the shortage of car door locks.

This new supply crisis comes at a time when the automobile industry in Russia has taken a nosedive in terms of sales. Economic fluctuations in the country, falling oil prices and other Western sanctions on Ukraine have led to car sales going down by 42% year on year in November, 2015.

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