KAMAZ Analised Its Prospects after Russian Etnered WTO
OREANDA-NEWS. In case a scrappage fee becomes obligatory for Russian auto makers from the 1st of July, KAMAZ will have to allocate 10-18 billion roubles more, not specified in its business plan.
It may happen because of requirements of the European Union which demands to give equal rights to Russian producers obliging them to pay a scrappage fee without special preferences. The reason for these requirements is protection of free competition. The Explanatory Note to the Federal Draft Law says that it is caused by “a need to adapt the RF legislation to conditions of Russia's membership in the World Trade Organization”.
So, are there any advantages for KAMAZ in Russia's entry into the World Trade Organization? This remarkable event in Russia's economy entailed a number of changes in a conception of development of whole industries. Domestic producers need to accept new terms imposed by the WTO membership. The strategy of automobile industry development in Russia is currently being reconsidered and supplemented. KAMAZ will have to work under changed conditions.
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