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According to RIA Novosti news agency, Russian President Vladimir Putin said at the meeting that there was a significant contraction in the automobile industry and oil refining industry.

The conflict between Russia and Ukraine has superimposed sanctions from Europe and the United States, which has had a very serious impact on Russia, especially in the automobile industry, where local car companies have stopped production and overseas car companies have withdrawn, making the Russian automobile industry usher in a dark moment. According to reports, as the conflict between Russia and Ukraine led to the withdrawal of major car companies from the Russian market, only two of Russia's more than 20 vehicle manufacturing plants are in operation, one is a local Russian company, and the other is a Chinese brand factory.

The latest figures show that Russian car sales fell 83.5 per cent in May from a year earlier to 24268, compared with 78.5 per cent in April and 62.9 per cent in March, possibly the lowest monthly figure since the 1960s or 1970s. In addition, Russian car sales totaled 318114 from January to May in 2022, down 52 per cent from a year earlier. In terms of specific brands, local automaker Lada Motors (- 84.3%) fell slightly more than the market, but it is still Russia's largest carmaker, with a market share of 24.8%. It was followed by Korean brands, with Kia down 80.8% and Hyundai down 82.1%.

Of course, the car company most affected by the conflict between Russia and Ukraine is Renault, which agreed on May 16 to sell its entire stake in Renault Russia to the Moscow municipal government and its 67.69% stake in AvtoVAZ to NAMI, a Russian government-backed automotive research and development center, despite the high cost of divestment. Data show that Renault sold 26412 vehicles in Russia from January to May in 2022, down 53.5 per cent from a year earlier, of which 1789 were sold in May, down 85.7 per cent from a year earlier.

By contrast, Chinese car brands had less impact, with Geely falling 54.7 per cent year-on-year to 907 vehicles, the highest monthly ranking ever achieved by a Chinese carmaker, and the brand broke its record share. This was followed by Harvard, whose sales in Russia fell 71.8 per cent in May from a year earlier to 892, ranking eighth, also a record. It is understood that Great Wall has a factory in Russia that produces Harvard F7, F7x and Harvard H9 models, with sales of 39000 vehicles in 2021. Geely and Chery, two other Chinese brands, exported 25000 and 37000 cars to Russia in 2021, respectively.

The latest data released by Russian auto industry analyst Autostat show that the share of Chinese brands in the Russian market continues to rise, rising 150% to 16.9% in May 2022 compared with the same period last year. Chinese brands are second only to Russian brands and Korean brands in the Russian market. In early May, Zhang Hanhui, China's ambassador to Russia, said: Chinese cars will continue to increase their share of the Russian market. Industry insiders say the departure of overseas brands is likely to be a new opportunity for Chinese car brands, which seek overseas expansion and predict that more Chinese brands are likely to seek to establish a Russian production base in the future. However, Cui Dongshu, secretary general of the Federation, believes that Chinese brands entering the Russian market should be cautious and should not be recommended to advance rashly, and the Russian economy is unstable, especially drawing on Russia's early discrimination policy against Chinese car companies.

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