Russian Government to Buy Only Locally Made Vehicles

Prime Minister Vladimir Putin says Russia's federal, state and municipal authorities will be ordered to buy only vehicles made in Russia or trade partners Belarus and Kazakhstan.

The rules could benefit foreign automakers that build vehicles in Russia including Audi, BMW, Chevrolet, Ford, Opel and Volkswagen as well as domestic carmakers.

About $3 billion of Russian taxpayers' money per year is used to buy and maintain cars for government officials, according to Moscow-based business daily Vedomosti.

Putin, who also is the country's president-elect, contends the measure does not violate the principles of the World Trade Organization, which Russia is expected to join later this year.

Russia's move is not as draconian as the guidelines China is drafting, which will limit government fleet purchases to Chinese brands.