According to Bloomberg News, Russian Prime Minister Dmitry Medvedev recently ordered the government agencies to procure foreign cars and machinery produced in Russia, thus supporting local manufacturers.
The Russian government website has recently issued Medvedev’s order prohibiting the purchase of foreign-made official vehicles. The ban covers machinery for the agricultural and construction industries in addition to high-ranking officials, public transportation and emergency service vehicles.
“The country buys a lot; the budget for purchasing goods and services allocates a lot of resources,†Medvedev said. “When local products are comparable in quality and price to foreign manufacturers, let’s Resources are flowing to foreign companies, so it is better to allocate them to local companies."
According to Russian media RIA Novosti quoted Deputy Prime Minister Duvovich as saying that the ban is only for cars that are put into production outside Russia, and that foreign brands that are locally produced in Russia and that can meet the localization requirements are not included.
After the outbreak of the Ukrainian crisis, Russia was sanctioned by the United States and Europe, which led to further deterioration of the country's economic situation. The economic growth rate has fallen to a new low since the 2009 financial crisis. As the devaluation of the ruble suppressed market demand, new car sales in the Russian market in June this year also fell to the lowest level in more than four years.
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