Western sanctions: how the Moskvich fits into Putin’s car plan

In Moscow, the new model of the Soviet cult car Moskvich rolls off the assembly line in the former Renault factory. It’s a forced comeback under pressure from Western sanctions.

Not only in Russia cars of the brand Moskvich are cult. The vehicles, which shaped the streets of the Soviet Union and the GDR for decades, also have a large following in Western Europe. The “Mossi” fans, as they call themselves, hold regular meetings where they present their lovingly restored automobiles.

It’s been 21 years since the last Moskvich brand mid-range car rolled off the production line in Moscow. In 2006 the company was liquidated. But now, under pressure from Western sanctions, Russia is turning a new page in Moskvich’s book.

Is Putin also interested in “Moskvich 2.0”?

Series production of a new Moskvich model began today at the former Renault plant in Moscow. This is initially to be manufactured as a petrol engine with a 150 hp engine. An electric version will also be available by the end of the year. According to Russian information, the sale is planned for the first quarter of 2023.

According to earlier statements by Kremlin spokesman Dmitry Peskov, the new Moskvich model is a vehicle that “every Russian” wants to buy. Head of state Vladimir Putin is also interested in “Moskvich 2.0”.

Russian auto industry hit hard

For Russia, the production of the new Moskvich model is an important part of its propaganda campaign against the West. Putin wants to demonstrate that Western sanctions cannot harm the country and that it can also produce important goods such as cars itself.

In fact, however, the auto sector is one of the industries most affected by the sanctions. From January to October, new car sales in Russia plummeted 60 percent year-on-year following the departure of Western manufacturers.

Chinese (car) companies as profiteers

What’s more, it really isn’t as archaic as the brand sounds. Instead, Chinese manufacturers should be responsible for the design and engine of the new model. The Moskvich-3 is a copy of the Chinese city SUV JAC S4. Chinese companies are among the major beneficiaries of Western sanctions against Russia.

But the story of the Moskvitch is also a lesson in the once close ties between the western (automotive) economy and the Russian economy. The Moscow plant, where the new Moskvich is now being manufactured, has a long and checkered history.

Moscow plant with a Western-influenced past

The US car company Ford produced there almost 100 years ago. From 1946 the Moskvitch rolled off the assembly line – originally as a copy of the Opel Kadett. After the collapse of the Soviet Union, however, this proved to be uncompetitive. Production was discontinued in 2001.

In 2005, the French Renault group started car production in Russia as part of a joint venture with the city of Moscow, and later also had the Dacia models Logan, Duster and Sandero manufactured in the Moscow plant.

But cooperation with the West came to an abrupt end when Russia invaded Ukraine. The lines at the Moscow plant have been standing still since March, and in April Renault handed over the car factory to the city administration – for the symbolic price of one ruble.