Interfax Ukraine cited Mr Oleh Svynarchuk president of Bogdan Corporation as saying that a real measure in 2010 to support the Ukrainian car industry which was one of the sectors most badly hit by the recession this year will remain a rise in the import duty on cars.

He said that in other countries measures to stimulate consumer demand and support production are being realized, taking into account the market fall due to the downturn.

He added that "In Ukraine all measures are set in the budget, and we see that the budgets for 2009 and 2010 do not include these measures. We asked for the allocation of UAH 800 million to stimulate demand and issue state guarantees on credits, but this was not done this year, and a proposal to return to the import duty that was in Ukraine before the country joined the WTO or to impose a 15% to 20% duty remains."

Mr Svynarchuk said that the time would show how the issue would be settled. He said that a 13% extra charge on import duty this year did not have an effect as plans for the purchase of spare parts were made before Ukraine joined the WTO. As of early 2009, both producers and distributors had 1.5 times more cars in stock than expected sales for this year.

As reported, car production in Ukraine over the nine months of 2009 plunged 5.6 times YoY to 57,000 cars.

(Sourced from Interfax Ukraine)