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COUNTRY
REPORT - RUSSIA
“Import is still hampered by Western sanctions on logistics and banking operations, but “with a great desire, you can get almost anything you want.”
Currently, the Russian retreading industry is dominated by “grey busi- nesses” and even individual craftsmen, Podoinikov said, adding that this is not a secret for anyone. In the case of OTR tyres, they sometimes do not replace treads but try to restore them using “folk remedies.” In the end, such tyres could be simply dangerous to use, Podoinikov warned.
In the wake of sanctions, new tyre retreading plants like the one AirTire plans to build are much-needed, especially since there is a shortage of tyres in some sizes, Podoinikov said. On the other hand, he doesn’t rule volatility in the current economic situation.”
materials and casings, Evgeny Krents, director of the Russian environ- mental protecting association Shinoekologiya, assumed.
LACK OF IMPORTED RAW MATERIALS
- rectly subjected to Western sanctions. To circumvent restrictions, in May - out permission from the trademark’s owner (parallel imports). Around that time, the Russian Federal Customs Service suspended the disclosure of any information pertaining to foreign trade, so it is hard to say whether any imports continued.
A spokesperson for a Russian retreading plant said that some raw mate- after temporary disruptions in March-May, direct sales from Western that import is still hampered by Western sanctions on logistics and bank- ing operations, but “with a great desire, you can get almost anything you want.”
- ings. The spokesperson admitted that this problem has not hit the indus- by Chinese and Russian tyres, retreaders are eventually expected to start
A study conducted by the Russian news outlet 78 discovered that nearly - - ket. Alexey Sokolov, head of the retreading department of a St. Petersburg tyre service company, reported that against the background of skyrocket- ing prices for new tyres, a growing number of transport companies start- ed expressing interest in retreading.
DEMAND SET TO RISE
On the other hand, in general, the demand for retreaded tyres on the Some other retreaders told 78 that sales of retreaded tyres last year, in fact, were even higher compared with the previous year. In the wake of rising demand and problems with raw materials, the average price of tyre -
The current turmoil could further aggravate the old problems of the Rus- sian retreading industry. For example, Krents noted that most tyres in Russia are not suitable for retreading. In the new reality, some companies the contrary, could turn to retreading, not simply as a cost-saving solution, but due to problems with sourcing new tyres.
A GRIM ECONOMIC OUTLOOK
this doesn’t mean that Western sanctions don’t work.
Slumping energy revenues and soaring expenditure pushed Russia’s fed- the Russian Finance Ministry has recently disclosed. Non-oil and gas rev- enues, one of the key indicators of the health of the national economy, domestic VAT and income tax takings.
It could be safely said that things Russia remain highly uncertain, and a general long-term economic depression could take a toll on everyone, in- cluding retreading businesses.
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