Regional authorities are asking the government to leave car manufacturers alone
Automotive industry may suffer another wave of decline after the "innovations" of the government. Thus, the Ministry of Finance, for the third time in three years, plans to make changes to the procedure for definition of goods imported into the territory of Ukraine for use in the industrial production of motor vehicles. It is about the introduction of import duty on vehicle sets for large-size section assembly. The changes to the regulations will affect automakers of Transcarpathia. Currently, the automobile factory "Eurocar" is operatiing in the region, which is in the top three automakers of Ukraine. Annual contributions to the budget from the company amount to more than 350 million hryvnias. Late last year, the company approved with the Ministry of Industrial Policy the program for modernization of production facilities and jobs. But the proposed changes may adversely affect the operation of the enterprise, and especially the investment commitments to foreign partners. Moreover, according to the company's management, unwarranted changes in regulatory conditions in this industry will lead to impairment of investment projects - and hence to a decline in production.
Regional authorities have appealed to the Prime Minister requesting not to make changes to the procedure for definition of goods imported into the territory of Ukraine for use in the industrial production of motor vehicles. The authorities also propose to consider the formation of the Transcarpathian automotive cluster based on the industrial park "Solomonovo" and the company "Eurocar".
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