POLITICAL LEADERS PREFER JAPANESE CARS OVER "RIDING ON A

UNCLAS VLADIVOSTOK 000006

SIPDIS

E.O. 12958: N/A
TAGS: ECON PGOV RS
SUBJECT: POLITICAL LEADERS PREFER JAPANESE CARS OVER "RIDING ON A
COW'S BACK"


1. Summary. It is clear that citizens of the Russian Far East
are strongly against Moscow's effort to encourage the Russian
car manufacturing industry by increasing customs fees on
imported second-hand Japanese cars. Political leaders in the
region, however, are caught between the clear will of their
constituents and federal directives issued by Moscow. As
politicians in the Russian Far East find themselves increasingly
evaluated by citizens on how they stand on the policy, few are
showing support for using Russian-built cars.

Plenty of Japanese Cars For Official Use
--------------


2. On January 22, Vladivostok Mayor Igor Pushkaryov presented
twenty imported right-hand-drive Nissan and Toyota vehicles to
the Vladivostok militia for official use. He stated "these cars
are best for the traffic police's needs. According to
specialists, these right-hand-drive cars are optimal due to
their price to quality ratio." One month earlier Mayor
Pushkaryov presented twenty imported Japanese cars to municipal
medical clinics.


3. Pushkaryov is in an interesting position. He is the mayor
of the city at the epicenter of recent demonstrations and
initially expressed support for the demonstrators. He must also
keep one eye on how Moscow will react to support he offers them.
During the first demonstration against customs fees in
November, Pushkaryov made a speech supporting the demonstrators'
position and signed a petition against the customs fee increase.
During a subsequent demonstration, however, he turned away
demonstrators who appeared in front of his office for further
support.


4. While demonstrators in Vladivostok have been having
difficulty obtaining demonstration permits, those in Khabarovsk
have had an easier time. One reason may be their governor's own
preference for Japanese imports. Governor Viktor Ishayev
recently related to journalists his experience of switching from
Russian-made to Japanese cars. He likened riding in Russian car
as being "like riding on a cow's back."


5. Officials throughout the region have continued purchasing
Japanese imports. According to an unnamed source at the
Vladivostok automobile registration agency, the Far Eastern
Directorate of the Russian Federal Construction Agency
registered two dozen new Toyota Land Cruisers in late December

2008. Nikolay Kologorov, Khabarovsk regional Minister for
Agriculture stated in the media that "before purchasing Russian
vehicles it is necessary to measure all the pros and cons. A 15
percent customs increase is no reason to stop relying on foreign
technical expertise."

Governor's Russian Car Directive Ignored
--------------


6. One official actually echoing Moscow's position is Amur
Governor Oleg Kozhemyako, who called on all public officials in
the oblast to use Russian-made automobiles -- a directive which
met with little enthusiasm. Blagoveshchensk Mayor Aleksandr
Migulya publicly responded that he will refuse to trade in his
Toyota for a Russian car, since he has no complaints with it and
has no good reason to replace it. Amur Oblast Senator Amir
Gallyamov also expressed disproval with Kozhemyako's edict,
stating to the press that "RFE residents should personally
decide what car is more suitable for their own needs." He
further stated that though he agrees that Russian automobile
producers deserve support, competition should not be stifled and
that he doubts federal actions will be successful in improving
local industry.


7. Comment. Despite directives from the Kremlin to support
domestic industry, most political leaders in the RFE refuse to
give up their Japanese imports. They realize that the issue of
increased fees for imported Japanese automobiles is of paramount
concern for residents and few officials publicly express support
for the Kremlin's move. This weekend's unofficial rally in
Vladivostok may be a harbinger of further demonstrations, or an
indication that the popular movement against higher import
duties is already out of gas owing to the firm line from Moscow.
We expect continued discontent in the RFE over the issue, but a
more cautious approach from protesters and an interesting
balancing act from officials.

ARMBRUSTER