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On May 3rd,2022,
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Another trade war between Russia and Ukraine is looming.
Despite Russia's membership in the World Trade Organization (WTO) in August 2012 and Ukraine's status as an existing WTO member with all the protocols and agreements that both have vowed to follow, the two countries are on the approach of a "automotive trade war."
This is the latest in a long line of disagreements between Russia and Ukraine since the dissolution of the Soviet Union and the independence of Ukraine; the most recent was the so-called "Cheese War," in which the Russian diary industry successfully lobbied the Russian Duma to have "substandard" Ukrainian diary products removed from Russian retail outlets.
The 'Cheese War' came before the more serious conflict.The 'Cheese War' came before the more serious 'Gas Wars,' which are still ongoing. The gas wars began in the 1990s and peaked in the years 2005-2006, 2007-2008, and 2008-2009.
The newest conflict between countries stems from Russia's proposal to impose a 'utilisation-fee,' also known as a'recycling-tax' or a'scrappage tax.' On the surface, the new levy appears to be a protective measure for Russia's fledgling automobile sector and its significant international OEM investors (Ford, General Motors, Hyundai, Toyota and Volkswagen et al)
Conflicts between Russia and her neighbours must be examined holistically, since the source of the belligerence is not always evident. In the former Soviet Union, politics and business are inextricably connected, opaque by nature, and do not follow the same pattern.
President Putin paid a visit to Russian war graves in Ukraine in May 2009. He advised journalists to read Anton Denikin's diaries after a wreath-laying ceremony at the grave of the famed White Russian General who opposed the Bolsheviks.
"He's talking about Big Russia and Little Russia-Ukraine," he explained. "He claims that no one should be allowed to intervene in our ties; they have always been Russia's business."
Parts of Ukraine used to be referred to as "Little Russia," while Russia was referred to as "Great Russia." While degrading to some Ukrainians, Putin's use of the term "Little Russia" demonstrates his strong patriotic values and could be interpreted as a warning to the West not to intervene in Ukraine, Russia wants to pull this country closer to home by allowing it to join the Eurasian Economic Union.
Gas and Gazprom, the ultimate strategic weapon, has a powerful influence on politicians; no leader wants to be in charge of a country while its population are frozen. Especially in the case of Ukraine, where the 'Orange Revolution' is such a recent memory.
Despite the demands, Ukraine's President, Viktor Yanukovych, does not want to be subordinate to the Kremlin; on the contrary, he appears keen to demonstrate his independence.
This could explain why people who are perceived 'very' pro-Russia are penalised in proxy wars.
"My adversary's friend is my adversary."
Yulia Tymoshenko is a divisive woman who made her wealth in the gas sector; In Ukraine, there is no political light weight. She served as Prime Minister of Ukraine twice, from 2005 to 2007 and again from 2007 to 2010. She was sentenced to seven years in prison after being found guilty of 'abuse of power' when brokering the 2009 gas deal with Russia, demonstrating that politics and business is an opaque and hazardous game for the loser.
The conviction is seen by the European Union and other international organisations as "justice being applied selectively under political purpose."
Yanukovych is now announcing specifics on a new Ukrainian tax on Russian-made cars in retaliation for a Russian policy ostensibly designed to assist the country's indigenous auto industry. ahead of the significant tariff reductions approved as part of its WTO entrance package.
Russia joined the WTO on August 22, 2012, after nearly two decades of negotiations. The country agreed to cut its final legally enforceable tariff ceiling from a 2011 average of 10% to 7.8%, and negotiated transitional agreements for its vital industries. Russia was allowed to defer tariff cuts on foreign-made automobiles, helicopters, and civil aircraft for seven years as part of the most generous of agreements.
Russia, on the other hand, placed its 'utilisation fee,' often known as a recycling or scrappage tax, on foreign-made cars within a week after entering the WTO.
In response, the Ukrainian government said that it would impose a $1,000 tax on Russian-made vehicles, putting pressure on the Russian government to drop its own tax.
Ukraine has been a member of the EU since 2004.
Ukraine has been a member of the World Trade Organization since February 2008, and Russia has just been a few weeks.
It's noteworthy that the erstwhile allies have completely disregarded W.T.O. legislation, as a 'tit for tat' dispute has played out in the international press, and rather than reverting to the W.T.O. Courts, both have chosen to fight 'outside'.
I have a strong interest in Russia and like sharing my 25 years of business experience, including 10 years in Russia.
Because commerce in Russia is opaque and fraught with hazards, it must be considered as a whole.
It's an appealing market if you get the appropriate counsel.
• a market of more than 140 million people;
• A growing, well-educated, and affluent middle class;
• Massive infrastructural requirements
Visit [http://www.automotivesupplychainrussia.com] for more information.
Please see my company's website and contact me if you are interested in earning from Russia.
We offer a one-stop shop for entering the market. If you're already exporting to Russia and are fed up with delays and excuses for a sluggish supply chain, get in touch with us.
I eagerly await your response!
thanks for reading.
Here is my previous article
1:https://read.cash/@Beckham/whats-on-your-plate-buffalo-or-bison-4541b39c