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Overreliance on foreign-made technologies and oil and gas revenues could pose a risk to the country, the president has said
Russia would inevitably lose its sovereignty if it relies solely on oil and gas revenues and abandons domestic production in favor of imports, President Vladimir Putin has said.
In an interview with journalist Pavel Zarubin released on Sunday, Putin defended Russia’s decades-long effort to localize automobile manufacturing, saying it was essential for protecting the country’s economic and political autonomy.
He recalled that in the 1990s many of his government colleagues wanted to abandon efforts to develop the car industry and instead rely on foreign-made vehicles, a view that he opposed.
“We must talk about technological independence… If we buy everything with the oil and gas [revenues] – and now they [the West] are trying to cut us off from oil and gas – then Russia will simply lose its competitiveness, and with it, its sovereignty,” he said.
According to Putin, efforts to improve the domestic car industry began with cooperation with Western partners that were licensed to build assembly plants in Russia. Starting in the early 2010s, the authorities gradually tightened localization requirements, demanding that automakers produce more components domestically.
“This was serious work. We were essentially creating our own cars,” Putin remarked, adding that the effort paid off after the escalation of the Ukraine conflict in 2022, which saw an exodus of Western companies from Russia as Kiev’s backers introduced sanctions against Moscow.
Russia sold about 1.571 million new passenger cars in 2024 (up 48%), with Lada accounting for roughly 28% (436,155 units) and remaining the market leader, according to the analytical agency Autostat. However, all others spots in the top ten were occupied by Chinese brands. Russia’s Kamaz also distributed the most trucks in the country last year, despite an overall drop in sales, the agency said.
Putin has personally promoted the domestic automobile industry and has often been seen driving Lada and Kamaz vehicles. He also uses a limousine from the Russian luxury brand Aurus as his presidential car. In 2024, he gifted Aurus limos to North Korea’s Kim Jong‑un and Bahrain’s King Hamad bin Isa Al Khalifa.
