You're reading: Ukraine hopes to attract investors to car building sector in period of imports restrictions

The main goal of possible sanctions under a special investigation into imports of cars to Ukraine is the attraction of investors to the Ukrainian car building sector, so that they could bring the sector out of crisis and retain jobs in it, a source in the interagency commission for international trade has told Interfax-Ukraine.

“If the restrictions were not introduced – the car building sector in the country would simple die. If an investor is ready to come to the country we’re ready to compromises during the talks,” he said.

The source said that the commission had all the grounds for making a decision to protect domestic manufacturers: the growing market share of imported cars, 75-90% idle facilities, the loss of jobs and subsidiary support of the sector in importing countries.

He said that the commission’s decision to introduce special duties has not been published, as it would be better to carry out consultations with the interested countries. He said that Ukraine is ready to make some concessions, for example, the application of combined protective measures with the introduction of quotas and not duties, although the main national interest is the attraction of investors to the Ukrainian car industry.

The source said that there are such potential investors who are ready to organize SKD assembly (including dyeing and welding) and present modern models, despite the construction of facilities in neighbor countries, in particular, in Russia.

“We have a chance to attract an investor to Ukraine and we should use it,” the source said. He said that with the volume of the new car market of around 600,000 cars per year, domestic production could deliver 300,000-400,000 cars.

He added that the country is interested in investors, whose products could be supplied to neighbor markets: Russia, the CIS and EU.