Payment Issues Strain Car Parts Deliveries in Russia

Auto suppliers in Russia reportedly could not facilitate up to 40% of car parts shipments due to payment issues.

The issues have worsened since July with up to 40% of shipments stuck at the origin due to payment issues, where failed payments meant shipments could not be sent from abroad, Head of the Russian Union of Auto Insurers Yevgeny Ufimtsev told Russian news outlet Izvestia.

He said shipments, before July, normally arrived within 15-30 days, but now only 60-70% of shipments arrive within this timeframe.

Ufimtsev said that the delays necessitated intermediaries’ help to transfer money and ensure that the goods were sent, which increased the cost. He added that increased prices can also affect local automobile insurance quotes as they rely on spare parts reference books, though he added that the rates remain stable at present.

The delays apply to shipments from the US, Europe, and China, Ivan Popov, Director of the Department for Settlement of Losses for Motor Transport at SK MAKS, told Izvestia.

Though Western sanctions have led to an exodus of foreign car manufacturers in Russia, with most foreign cars no longer available in the country, car dealers have managed to bypass the sanctions to import foreign cars into Russia through neighboring nations such as Armenia. Some foreign luxury cars have also made their way to Russia through Georgia.