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Russia Orders Government to Shun Foreign-Made Cars

Russia has banned state and local governments from buying vehicle made outside the country.

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Russia has banned state and local governments from buying vehicle made outside the country.

Prime Minister Dmitry Medvedev says he issued the order to support local companies that are "able to compete with foreign producers based on quality and price."

The ban does not apply to foreign-brand vehicles that are assembled in Russia. Among locally produced marques are Audi, BMW, Cadillac, Ford, Nissan, Skoda, Toyota and Volkswagen.

The ban applies to vehicles purchased for high-level officials, public transportation and emergency services. It comes as sales of locally produced cars in Russia, which are running 8% below year-ago levels, plunged 17% in June.

Gardner Business Media - Strategic Business Solutions