Kazakhstan May Ban Temporarily Import of Cars from Russia
OREANDA-NEWS. Import of cars from Russia to Kazakhstan may be banned temporarily. The authorities of the republic are going to begin consultations on this issue with the Russian side on February 6th. The main purpose of a possible ban - is to support the domestic economy, which is under pressure due to the devaluation of the ruble and a shift in demand for products, sold in Russia. Many motorists from Kazakhstan since the end of the last year in large quantities buy new and used cars in Russia because of the significant benefits in terms of prices in foreign currency.
According to "Za rulem.RF", the National Chamber of Entrepreneurs of Kazakhstan has proposed to the government to introduce temporary restrictions on the import of goods due to the devaluation of the ruble, including cars, food and building materials. The issue will be considered at the intergovernmental level since February 6th.
"We need some way to support the domestic economy, it is clear that we have two ways - either correction or closure of borders. Perhaps, after all, the closure of borders would be less painful and more rewarding for our producers and for the national economy ", - said the representative of one of the banks in Kazakhstan.
In addition, the Kazakh authorities propose to allow the import of vehicles into the country only to authorized dealers. A significant increase in the supply of new and used cars from Russia to Kazakhstan decreased the local market of new cars in 2014.
At the end of the last year, the prices of used cars increased sharply in some regions of Russia. The reason was not only an increase in prices for new cars because of the devaluation of the ruble, but also a significant demand from buyers from neighboring countries, including Belarus and Kazakhstan. Many dealers in these countries set prices in US dollars. After a sharp devaluation of the ruble, it has become cheaper to buy a number of brands of cars in Russia by 40% in average on the US currency.
Kazakhstan is one of the main foreign markets for a number of Russian auto companies, including for AvtoVAZ and its joint venture with GM, UAZ, and KAMAZ. Also Russian plants Renault, Toyota, Hyundai and Ford Sollers deliver products to Kazakhstan.
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