Russia to protect domestic car makers with higher import duty

Russia will gradually raise the import taxes for the foreign-made cars, Russian Prime Minister Vladimir Putin said Monday.

Putin noted this would be done to stimulate foreign companies to build their production facilities in Russia.

Putin explained that first the import duties would be raised for used cars and later for the new cars, since Russian customers needed foreign-made cars yet.

He said foreign companies should realize it clearly that Russia would protect its industry with all available tools. Still, Putin soothed that the government was not going to undermine foreign car business in Russia and encouraged them to build their production facilities in the country.

"We want you to pass us your technologies, experience, raise the manpower productivity, technical skills of our workers," Putin was quoted by RBC news agency as saying, adding that he was against making Russia a trash bin for run-down equipment.

"We are not a member of the WTO, so we may afford to do it for ourselves," Putin said.

In 2009, Russia's government raised import duties for new foreign cars that had led to sharp rise of their prices in the local market.

Source: Xinhua