Page 18 - Retrading Business N102 2022-03
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COUNTRY
REPORT - RUSSIA
On the other hand, several market participants expressed confidence that the current crisis could push Russian businesses to increasingly rely on retreading services as a cost-saving solution.
“I see absolutely no problems in the imports of the raw material. So- me raw materials are supplied from friendly countries of Latin Ame- rica: Brazil, Argentina, and Ecuador. Everyone has problems with lo- gistics now, though not in terms of its absence, but in terms of timing. Supply chains have lengthened. Previously, it was possible to receive [goods] from Ecuador within 35-37 days, I think now it takes 60 days,” Kazachanko said.
PRICE SWINGS
A spokesperson for a Russian retreading company who wished not to since Russian troops crossed the border with Ukraine. He explained that the market demand temporarily slumped, but bounced back rather quickly. On the other hand, suppliers raised prices in early March, following an upward rally in the Russian ruble’s exchange rate.
Remarkably, the source said, when the Russian ruble strengthened against the dollar and euro, this factor had almost no impact on prices.
Speaking about a possible shortage of casings due to sanctions and exodus of Western brands from Russia the source said that, so far
no impact has been seen. In theory, he added, withdrawal of some brands, especially Michelin, would mean that less good casings would land on the market, but it depends on how many companies would actually leave and on what conditions, and it would take a few years to feel consequences pertaining to casing availability.
SANCTIONS, AGEING FLEET HAMPERS DEMAND
On the other hand, the demand for retreads on the Russian market is expected to plummet this year due to Western sanctions, the source said, adding that as of today, it is hard to make concrete forecasts.
Russian and Belarusian freight road operators have been banned since April 16 from working in the EU, except for those transporting essential goods.
In addition, the Russian truck market is also likely to be affected by Western sanctions. Research conducted by the Russian think tank 300,000 units. In 2021, Russian companies purchased 30,900 new
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