Russia Could Ban Used Cars, Other Goods in Response to Sanctions

Russia's response to Western sanctions could include caps on used car imports and other consumer goods, but Moscow is hoping that commonsense prevails in the West.

In response to Moscow's policy on Ukraine, leaders have agreed to move forward with a package of sanctions against Russia by the end of the week, according to RIA news agency, citing a Kremlin official.

"We have a number of non-agricultural products where our partners, primarily European, are more dependent on Russia than Russia on them," Kremlin economic aide Andrei Belousov was quoted as saying.

"This applies, for example, to (caps on) car imports, mainly used cars and on certain light industry goods, not all, but certain types of textiles."

Belousov added that the government would support companies hurt by sanctions.

"We are working on support methods," he said, according to Reuters. "It will certainly be provided."

Russia has moved to protect its economy after the United States and European Union imposed sanctions on officials, companies, and banks over Moscow's support of pro-Russian separatists in eastern Ukraine, according to Reuters.

So far Moscow has repeatedly denied any involvement in eastern Ukraine.

Kremlin banned food imports worth approximately $9 billion from the European Union, Canada, the U.S., Norway, and Australia, its strongest response to the sanctions thus far.

"I hope commonsense will prevail and we will not have to introduce those measures," Belousov said.

General Motors and Volkswagen have both cut back production in Russia over declining wages.

GM said in August that workers at its plant near St. Petersburg, which makes Chevrolet Cruze, Opel Astra, and Chevrolet Trailblazer vehicles, would only be asked to work four days in August and four days in September.

The plant will extend to eight in October, a company spokesman said to Reuters.

"When you look at Russia, the current environment is difficult," said Ford CEO Mark Fields, according to The Detroit Free Press. "But it's a big, important market, and it has the potential to be the largest market in Europe over time. The business environment right now is very challenging and fluid."

VW's Kaluga plant was closed on Sept. 8 for a 10-day shutdown.

Avtovaz, Russia's top automaker, also recently confirmed it was going to cut back production of its Lada vehicles before the end of the year due to a falling Russian market.