EU imposes sanctions on UAZ, Kamaz

The European Union has imposed sanctions against Russian carmaker Ulyanovsk Automobile Plant (UAZ) and truck-maker Kamaz.

The move is due to the possible use of their automotive equipment by the Russian armed forces in Ukraine. The document states that UAZ refers to the UAZ Patriot car, while Kamaz refers to the KAMAZ-5350 truck, the 6350 flatbed tractor and the 6560 heavy SUV. 

Due to the sanctions, both Kamaz and UAZ will not be able to export their vehicles to the European market as “dual-use products.”

Kamaz was already on the EU sanctions list. On 26 February – two days after the Russian military invasion in Ukraine – the company came under restrictions due to “control by the Russian government.” 

After that, the German Daimler suspended the work of the joint venture with Kamaz in Russia. Sanctions from the United Kingdom, Australia and Poland also apply to the truck-maker.

UAZ says they do not see significant risks for business due to being included in the EU sanctions list.

“Since the company has been working for a long time in conditions of refusing to supply components from European manufacturers and is consistently implementing a program to replace the component base,” it said to Russian newspaper Kommersant.

The company did not respond to Kallanish’s request for comments until deadline.

Carmakers in Russia decreased output significantly in January-April to only 264,000 passenger cars, down by 47.4% (see Kallanish passim). In April alone, only 20,000 units were produced, down 85.4% on-year, the steepest fall since Covid-19 lockdowns slashed output to 30,000 cars in April 2020, Rosstat says. Kamaz reduced production by 15% to 3,803 vehicles.

The vast majority of Russian car factories were still idle in April due to a shortage of components amid disrupted supply chains after Russia invaded Ukraine and was levied with sanctions.

Production of cars and trucks in the country is currently being carried out only by Haveil Motor Rus, UAZ and Kamaz.

Svetoslav Abrossimov Bulgaria