Russia Ups Tariffs on Imported Cars to Stave off Crisis

[NNN0LHI]

http://en.epochtimes.com/n2/business/russia-cars-import-8793.html

Dec 20, 2008

Russia is one of the hardest-hit by the global economic crisis, causing the country to plunge into its first recession since 1998.

Like in the United States, among the many industries impacted by the crisis, the automotive sector has been damaged severely. In November, auto sales were down 19 percent compared to the same month last year.

Russian automakers worry that if this trend continues, it would put their businesses in danger, resulting in job layoffs and production stoppage.

In 2008, around 75 percent of all automobiles sold in Russia were imported. Only 25 percent of the cars sold were produced domestically, meaning Russian customers prefer foreign imported cars than domestic Russian cars.