The interagency commission for international trade has launched an anti-subsidy (countervailing) investigation into imports of passenger cars from Russia to Ukraine.
According to an announcement in the Uriadovy Kurier newspaper issued on Thursday 18, the decision of the commission was made by Sept. 15 on the basis of a claim submitted by the Ukrautoprom association of automobile manufacturers, which acts on behalf of public joint-stock company ZAZ (Zaporizhia) and Automobile Assembly Plant two of public joint-stock company Bogdan Motors (Cherkasy).
The move affects passenger cars from Russia that could be classified under 8703 trade code: new passenger and other motor transport vehicles with petrol, diesel and electric engines (apart from snowmobiles, golf-buggies or vehicles equipped for temporary residence of people).
The commission established that there is enough information to establish that a claim was submitted by a national manufacturer.
According to the report, the claim has enough grounded information that Russian manufacturers of passenger cars use subsidies provided by Russian state agencies for production, sale, recycling, transportation and/or exports of passenger cars, in particular, under the sub-program ‘Automobile Industry’ of the Russian state program ‘Development of Industry and Increase of its Competitiveness.’
According to the report, there are programs for export support in Russia, in particular, the insurance of exporters from business and political risks and guaranteed state support for exports.
The federal law of Russia on the federal budget for 2013 and the planned period of 2014 and 2015 foresees refunding of a part of expenses to pay credit rates and coupons on bonds issued to Russian manufacturers and for the realization of several other projects.
Ukrainian automobile manufacturers said in their claim that imports of cars from Russia could do large harm to national producers.
The price of Russian cars prevents possible growth in the prices of Ukrainian-made cars.
Ukrainian manufacturers also said that the impact of negative consequences is confirmed by the pace of worsening of some economic factors (production, loading of production facilities, sales volumes, the market share and occupancy).
The commission within 30 days from the date of the publication of the announcement registers parties interested in the investigation and within 60 days the commission will discuss the comments and information on the investigation.
The decision of the commission took effect from the day of its publication.
