Russia has banned the exports of over 200 items including ‘made-in-Russia’ cars as a response to countries who are supporting Ukraine in the ongoing conflict. According to a report from the TASS news agency, the ban will last throughout the remainder of 2022.
Several automakers with manufacturing plants in Russia will face logistical trouble in the coming days. Reports add that Kia and Hyundai, in particular, will suffer from major supply chain hiccups.
The South Korean automakers have manufacturing plants in Russia that also make cars for several other countries. The export ban has forced Hyundai and Kia to suspend their operations in the country on a temporary basis.
Other companies that have suspended their operations in Russia include Daimler Trucks, General Motors, and members of the Stellantis group such as Opel, Citroen, and Peugeot.
Experts believe that, due to the volatile situation between Russia and Ukraine, the supply chain crisis will worsen, while the operational, material and logistical costs will rise. This will eventually add fuel to the burning issue that is the rising car prices around the world.