Putin Pledges to Protect Auto Industry after Joining WTO

Russia's Prime Minister Vladimir Putin said during a press conference that the local automotive industry will continue to be protected by the government even after the country enters the World Trade Organization. A potential joining of the WTO means that Russia can no longer apply import charges to foreign cars but, if needed, the country will impose other types of regulations to imported vehicles.

"If we see that the car industry operates in inequitable competitive conditions, we will find non-tariff instruments to protect it, for example, technical regulations," Putin said according to RIA Novosti. "However, it is possible to find protection instruments and there is such an intention," he added when talking about the way Russia competes with other nations in the truck segment.

Putin has always supported the local automotive sector and got involved in the business every time a local carmaker needed help from the government. Back in October 2009, when AvtoVAZ was in trouble due to the economic recession, Putin was among the first who emphasized that French manufacturer Renault must help the Russian carmaker as part of its 25 percent stake in the company.

He even urged Renault to provide support to AvtoVAZ, emphasizing that the foreign partners should increase their stakes in Russian carmakers if local companies encounter financial difficulties.

"As far as modernization is concerned, we need to talk to foreign partners, Renault and Nissan. We have already given AvtoVAZ the first tranche of 25 billion rubles and have avoided diluting their (Renault) stake," Putin said at that time. "Either they (Renault) participate in funding the enterprise or we will have to agree with them on dividing up our stakes,."