UKRAINE: KOREAN ON MOSCOW?
Weathervane of Ukrainian legislation
turned from East to West.
“FIVE Erase, EIGHT WRITE …”
The Cabinet of Ministers canceled the restriction on car imports, adopted two years ago in the interests of JV AvtoZAZ-Daewoo. Now it is allowed to import cars under the age of eight (up to five). The Korean side was offended and stated that it had the right to withdraw from the joint venture demanding a return on investment and compensation for moral damage. It smelled of international scandal.
“Cossacks behind DEUunay, ” as witters call the participants of the joint venture, would probably not break their spears because of only five-year qualifications - he still did not restrain the semi-legal mass import of old cars (ЗР, 2000, No. 2). But the government also abolished the so-called minimum customs value of imported goods, which amounted to $ 5, 000 for automobiles. Even when importing pimped goods from the landfill, it was necessary to pay 20 percent VAT in the amount of 1, 000. e. That, to the satisfaction of the joint venture, significantly increased the cost of cheap foreign cars competing with its products on the Ukrainian market.
This decidedly did not suit the EU countries, for which the sale of an auto-old to the East brings solid economic and environmental benefits. In recent years, the European Union has repeatedly accused Ukraine of violating freedom of trade in cars, threatening it with sanctions. And official Kiev surrendered or, if you like, “surrendered” the Koreans, who at the very beginning were promised unchanged rules of the game. “Do not promise the virgin young everlasting love on earth, ” the poet rightly warned …
“Virgo, ” frankly, could do without the love of the government. But for this it was necessary, entering the market with new models, immediately provide them with the proper service. And do not trust marketers who, taking what they wish for reality, have overestimated the purchasing power of the population by more than one and a half times. If the base “Lanos” were not originally sold for 8, 200 y. e., and for 5100, as it is now, he would not gather dust in warehouses …
But back to the legislative weather vane. Having appealed to the old Europe (who, in the person of the European Commission, changed her anger towards Ukraine and agreed to grant her the status of a country with a transition economy), he is ready to turn in the opposite direction: the Cabinet of Ministers is preparing a decree on protecting the interests of a domestic producer. The government delegation went to Poland for experience. Could not ride, as the whole "secret" of the Poles is common sense. Why impose age restrictions on imports, causing irritation of the EU and the discontent of its people, if it is impossible to import old cars by the rates of duties? As the Polish journalist Andrzej Dobrzyński told me, his compatriots are no longer taking a second-hand from the West, because, for example, a two-year-old car will cost no less than the same new one purchased in Warsaw from an authorized dealer …
"LADIES" IN UKRAINIAN
Another hot topic of 2000 was the emergence of local assembly VAZs in Ukraine. And it was like this: CJSC “Ukrprominvest”, which began with the production of confectionery products, acquired a state-owned stake in the Lutsk Automobile Plant (81%) and turned to AvtoVAZ with a proposal to make the “nine” there. This year, at least 2500 VAZ 2109 3 will be assembled from car kits, and then the “seventh” and “forty-third” models will be planned.
Appetite comes with eating. And now AvtoVAZ has offered to produce its cars at other Ukrainian enterprises, considering the assembly in Lutsk as “a small part of the entire project”. Prime Minister Viktor Yushchenko supported this idea and ordered that an economic justification be urgently prepared.
In Soviet times, AvtoVAZ received a quarter of all components from Ukraine. Today this figure is 7 times less - 3.5%. To restore former cooperation under the new conditions is a mutually beneficial and noble business. The Russians could supply the Ukrainian partners with car kits for assembly (at the first stage - up to 30 thousand a year), and receive a wide range of materials and products.
It is difficult to imagine such a project without the participation of the Zaporizhzhya Automobile Plant. Honestly, I expected a negative reaction from the AvtoZAZ-Daewoo joint venture: after all, VAZs are after all competitors to both Tavria and Lanos. But a confidential conversation with one of the leaders of the joint venture dispelled these fears.
“The market for VAZ cars in Ukraine still exists, ” he said, “so why don’t we profit by using free capacity?”