Moscow tells officials to buy Russian Ladas, Chinese cars

(Reuters) – Russia’s government on Friday published a list of domestically-produced cars that state officials should buy, all either Russian or Chinese brands, highlighting Beijing’s infiltration of Russia’s automobile industry since the Ukraine war.

Chinese carmakers have seized market share, after producers such as Renault (EPA:) and Nissan (OTC:) departed.

As the West shuns Russia, Russia has shunned Western corporations.

The Kommersant newspaper this year reported the Kremlin had told officials involved in preparations for Russia’s 2024 presidential election to stop using Apple (NASDAQ:) iPhones because of concerns the devices are vulnerable to Western intelligence agencies.

On Friday, the Industry and Trade Ministry said the car list was made up of those recommended for priority use by state and municipal employees for official purposes, following an instruction from President Vladimir Putin.

“To date, domestic companies have already produced a wide range of models with various technical characteristics and equipment (six brands and more than 20 models) that are able to meet the needs of various levels of official,” the ministry said.

All automakers have committed to deepen localisation of production, based on special investment agreements with the government, it added.

The Russian cars listed were five Lada models, produced by Russia’s largest carmaker Avtovaz, as well as the UAZ, Aurus and Moskvich brands, and Evolute electric cars.

The Moskvich, a revived Soviet-era car, is emblematic of China’s growing sway over Russia’s car industry. Sources have told Reuters the Moskvich 3 model is a JAC Sehol X4 assembled in Moscow using kits purchased from a Chinese partner.

Five models of Chinese carmaker Haval, which has been producing cars at its plant in the Tula region, 200 kilometres from Moscow, since 2019, were listed.

Haval did not immediately respond to a request for comment.