Production of new Russian automobiles fell by about 85% in April 2022 according to Rosstat, the country's federal agency for government statistics, likely due to the impact of economic sanctions imposed on Russia due to the invasion of Ukraine.
According to the Russian website Motor, Russian auto factories produced 19,900 cars in April, an 85.4% decline from the 136,000 reportedly produced in April 2021. A separate report from S&P Global, which was based on a survey of manufacturers, found that production fell by 61% last April when compared to the same month the year before, according to The Wall Street Journal.
Bloomberg News reported in May that car sales in Russia dropped by 79% in April when compared to a year earlier, with just 32,706 vehicles sold according to the Association of European Businesses.
The European Union is planning on adding new sanctions, including a ban on oil imports and on its insurers from providing coverage for Russian crude oil cargo. However, economists told the Journal that the impact of these sanctions will be somewhat alleviated by the money that Russia still receives from exporting energy resources.
"Overall, the embargo will be painful for Russia, but it won't be a disaster," Capital Economics' Liam Peach told the newspaper. "While half of oil export volumes may be lost, the other half won't, and in the meantime Russia will benefit enormously from sky-high energy prices."
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
© 2023 Newsmax. All rights reserved.