Prices of Chinese cars to rise sharply in Russia due to problems with payments

Prices for Chinese cars in Russia will rise as early as September due to problems with money transfers to China.

Source: The Moscow Times

Details: Prices for Chinese cars in Russia will rise by 10% in September.

It is reported that payments take one and a half to two months to reach China, and some are being returned, which dramatically increases the cost of delivery. 

Dealers were also negatively affected by the increase in the Central Bank's key policy rate to 18%, as it led to an increase in commercial loan rates to 26-30%. 

Difficulties in paying for car deliveries from China have already led to a 5% rise in prices for new cars.

Background:

• Russia and China may switch to barter in their mutual trade in the autumn due to problems with bank payments caused by Western sanctions.
• Banks in countries that do trade with Russia are increasingly delaying or failing to make payments, worried about secondary sanctions.

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