Serbia receives Russian automobile export quota

According to Reuters, Serbian Prime Minister Alexander. Aleksandar Vucic recently stated that the cars produced by Fiat in Serbia will receive quotas for export to Russia, but did not disclose the scale of the quotas and whether the auto industry will be included in the scope of free trade agreements.

Since the free trade agreement between the two countries excludes the automobile industry, Serbia’s cars exported to Russia must pay high tariffs. The country had proposed to Russia to include the automobile industry in the scope of the agreement in order to increase the competitiveness of its domestically produced cars in the Russian market, but it did not obtain the Russian agreement.

During a recent visit to Yugoslavia, Russian President Vladimir Putin held talks with Vučić and said that "Given the good relations with Italy, we will give Serbia some quotas for export to Russia."

The Fiat plant in Serbia is located in the central city of Kragujevac. Production of the Fiat 500L began in July 2012. The main export markets include the European Union and the United States. The country’s current economic situation is seriously out of balance, mainly driven by Fiat’s exports. Therefore, this move will give the country’s economy a certain boost.

Last month, due to low demand in the European market, the Kragujevac plant had been suspended for several days. The factory was previously used to produce local local brand Yugo. It is currently a joint venture between Fiat and the Serbian government, of which Fiat holds 67% and another 33% is held by the Serbian government.