AVTOVAZ, Sollers and Moskvich came under US sanctions

On September 14, AVTOVAZ, Sollers and Moskvich were included in the sanctions list (SDN List) of the Office of Foreign Assets Control (OFAC) of the US Treasury. Thus, now all the largest domestic automakers are under US sanctions, writes the Vedomosti newspaper. AVTOVAZ and Moskvich declined to comment. The Sollers representative said that the company does not expect any consequences from the sanctions, since for the last year the group’s business has been completely restructured to "sanction-resistant components supply channels, financial settlement mechanisms and is strategically focused on technological independence from external partners."

According to an industry source, it is now impossible to assess the potential impact of being included in the SDN List on the activities of domestic automakers, since the beginning of the special military operation, they have all set a course for actually replacing imported components with Russian ones. In turn, Ilya Zharsky, managing partner of the Veta expert group, notes that AVTOVAZ, Sollers and Moskvich may have foreign suppliers for whom the introduction of sanctions creates certain risks.

This also applies to Chinese partners, even though China does not join the sanctions. However, it is possible that some changes will follow in the logistics of components and vehicle sets supplies and mutual settlements in order to reduce these risks.