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‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by chopnaira: 3:44pm On Jun 11, 2022
Prices have spiralled out control since invasion of Ukraine as market struggles to adapt.

Eldah Gadzhiev’s heart sank when he heard the sputtering from the engine of his Skoda one day in April. Gadzhiev, who owns a fleet of four cars that he leases as taxicabs in Moscow, knew it was a terrible and expensive time for a breakdown.

Prices for spare parts, if you even could find them, had spiralled out of control since Vladimir Putin ordered the invasion of Ukraine two months earlier. “I understood that I was in a bad situation,” he said. “I thought: the repairs are going to cost as much as the car.”

Dealerships were useless, he said. His car parts shop told him that the waiting list was months long, time he could not wait to repair his vehicle.

So he tried posting on a public chat. That’s when his phone began to “explode”, he said. He received tens of calls, some from rough-sounding “dealers” offering to meet or giving him vague promises to get the parts he needed.

“It’s full-on speculation,” he said. “There are no more spare parts. So the prices are either way too high, you could almost [throw away] the car, or you think: is this illegal?”

He suspected that many of the parts he was offered had been stolen. “It’s the return of banditry,” he added.

Few sectors of the Russian economy are feeling the strain of the country’s near total isolation more than the automotive industry, where parts for new and used vehicles are in short supply.

Gadzhiev said he ended up paying eight times the old rate for his repairs. Others say prices have jumped tenfold.

Aleksei Atapov, the owner of a car repair firm, said: “We are in a pretty sad situation in terms of car repair and maintenance in Moscow. The central warehouses closed at the end of February, and even the custom parts that arrived were not given to us. They returned the money and took all the parts back abroad.

But at the moment, market players say stockpiles have reached exhaustion. “All the substitutes ran out very quickly,” said Atapov.

The shortages are affecting new cars as well. Avtovaz, Russia’s largest carmaker, announced an extra week of furloughs for workers owing to a shortage of foreign parts. Car sales in Russia plunged 83.5% in May, the Association of European Businesses (AEB) said on Monday, and new car prices have risen by an average of 50%.

The situation may be even more worrisome in Russia’s aviation industry, where airlines are cannibalising their fleets for parts while seeking out whatever new sources for imports they can find.

“The main problem is that service companies, firms that service and certify the Airbuses and Boeings and hand out papers that allow the planes to fly to Europe, are not allowed to give out these papers any more,” said a senior executive for Sukhoi Superjet. “We have started cannibalising some planes, using parts of a few older ones to keep the new ones going.”

One pilot who regularly covered midhaul flights to the UK and other European destinations for his airline wrote that the situation was “bleeped”, adding that he felt his company was ignoring safety concerns brought up by pilots on a regular basis.

https://www.theguardian.com/world/2022/jun/11/the-return-of-banditry-russian-car-industry-buckles-under-sanctions
Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by chopnaira: 4:03pm On Jun 11, 2022
Too bad.

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by Kingsnairaland(m): 4:31pm On Jun 11, 2022
chopnaira:
Prices have spiralled out control since invasion of Ukraine as market struggles to adapt.

Eldah Gadzhiev’s heart sank when he heard the sputtering from the engine of his Skoda one day in April. Gadzhiev, who owns a fleet of four cars that he leases as taxicabs in Moscow, knew it was a terrible and expensive time for a breakdown.

Prices for spare parts, if you even could find them, had spiralled out of control since Vladimir Putin ordered the invasion of Ukraine two months earlier. “I understood that I was in a bad situation,” he said. “I thought: the repairs are going to cost as much as the car.”

Dealerships were useless, he said. His car parts shop told him that the waiting list was months long, time he could not wait to repair his vehicle.

So he tried posting on a public chat. That’s when his phone began to “explode”, he said. He received tens of calls, some from rough-sounding “dealers” offering to meet or giving him vague promises to get the parts he needed.

“It’s full-on speculation,” he said. “There are no more spare parts. So the prices are either way too high, you could almost [throw away] the car, or you think: is this illegal?”

He suspected that many of the parts he was offered had been stolen. “It’s the return of banditry,” he added.

Few sectors of the Russian economy are feeling the strain of the country’s near total isolation more than the automotive industry, where parts for new and used vehicles are in short supply.

Gadzhiev said he ended up paying eight times the old rate for his repairs. Others say prices have jumped tenfold.

Aleksei Atapov, the owner of a car repair firm, said: “We are in a pretty sad situation in terms of car repair and maintenance in Moscow. The central warehouses closed at the end of February, and even the custom parts that arrived were not given to us. They returned the money and took all the parts back abroad.

But at the moment, market players say stockpiles have reached exhaustion. “All the substitutes ran out very quickly,” said Atapov.

The shortages are affecting new cars as well. Avtovaz, Russia’s largest carmaker, announced an extra week of furloughs for workers owing to a shortage of foreign parts. Car sales in Russia plunged 83.5% in May, the Association of European Businesses (AEB) said on Monday, and new car prices have risen by an average of 50%.

The situation may be even more worrisome in Russia’s aviation industry, where airlines are cannibalising their fleets for parts while seeking out whatever new sources for imports they can find.

“The main problem is that service companies, firms that service and certify the Airbuses and Boeings and hand out papers that allow the planes to fly to Europe, are not allowed to give out these papers any more,” said a senior executive for Sukhoi Superjet. “We have started cannibalising some planes, using parts of a few older ones to keep the new ones going.”

One pilot who regularly covered midhaul flights to the UK and other European destinations for his airline wrote that the situation was “bleeped”, adding that he felt his company was ignoring safety concerns brought up by pilots on a regular basis.

https://www.theguardian.com/world/2022/jun/11/the-return-of-banditry-russian-car-industry-buckles-under-sanctions

https://www.just-auto.com/news/avtovaz-planning-production-restart-report/

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by 9gerian: 5:02pm On Jun 11, 2022
This comes across as a huge opportunity for Chinese and black market suppliers.

See deals…

Kingsnairaland:


https://www.just-auto.com/news/avtovaz-planning-production-restart-report/
Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by leofab(f): 5:07pm On Jun 11, 2022
Gradually they can get those from China
Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by mojounited(m): 9:12pm On Jun 11, 2022
leofab:
Gradually they can get those from China
Exactly what I wanted to type. Russia should just inform China of the different years and models of cars and boom! the parts (copies) will become available in the Russian market...

There's now a road border crossing between both nations, so shipment of goods will be pretty easy..

3 Likes

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by seunny4lif(m): 9:56pm On Jun 11, 2022
They can get it from India and China, even South Korea will supply through Black market cheesy cheesy cheesy

Maybe its time Nigeria invade Benin Rep and Cameroon, so they can sanction us because even without sanction, things are hard here.
Iran with all the sanctions have good electricity etc and they still export massive without SWIFT code meaning Africa as a continent should have our own monetary system

1 Like

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by Kingsnairaland(m): 11:21pm On Jun 11, 2022
Russia is self sufficient in all things both their home made car is built by them.

Russia is self sufficient they can build their own cars without the help of USA


Let stop spreading fake news from Google

3 Likes 3 Shares

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by leofab(f): 1:55am On Jun 12, 2022
mojounited:

Exactly what I wanted to type. Russia should just inform China of the different years and models of cars and boom! the parts (copies) will become available in the Russian market...

There's now a road border crossing between both nations, so shipment of goods will be pretty easy..
but it’s detrimental to Russia cos every country want an advantage for themselves..
Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by gambojimeta: 2:16am On Jun 12, 2022
Hmmm

Everybody go chop the recession breakfast.

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by gambojimeta: 2:35am On Jun 12, 2022

Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by Kingsnairaland(m): 5:18am On Jun 12, 2022
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Ordinary pad USA can't get again in super market lol
Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by mojounited(m): 8:06am On Jun 12, 2022
leofab:
but it’s detrimental to Russia cos every country want an advantage for themselves..
True, to some extent. Renault (vehicles and) parts that were produced in Russia would now be sourced in China and open markets. Add that to other western commodities and that becomes a huge capital flight.

But, with the situation/position Russia is in now due to sanctions, it could be a temporary fix until such a time manufacturers of other brands set-up their plants in Russia.
Re: ‘the Return Of Banditry’: Russian Car Industry Buckles Under Sanctions by leofab(f): 8:41am On Jun 12, 2022
mojounited:

True, to some extent. Renault (vehicles and) parts that were produced in Russia would now be sourced in China and open markets. Add that to other western commodities and that becomes a huge capital flight.

But, with the situation/position Russia is in now due to sanctions, it could be a temporary fix until such a time manufacturers of other brands set-up their plants in Russia.
china already have a competitive market..

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