Imposition of import restrictions into Russia on the automotive sector would “massively impact” business and could lead to dealerships being swamped says a major industry body in the country.

Speculation has been rife for weeks Russia is mulling the introduction of such limits as a further measure in the escalating war of words – and sanctions – between The Kremlin and the West with the Ukrainian crisis still showing no sign of ending.

“Medvedev recently talked about import restrictions concern [ing] cars, ships and vessels Russia’s Association of European Businesses automotive chairman, Joerg Schreiber, told just-auto at yesterday’s (27 August) Moscow Motor Show.

“If that became some sort of reality, you would see people rushing towards showrooms. In my view, I would hope it is just show and the next possible step of escalation…in case the West takes further sanctions.

“This what I think the government wanted to hint. Like the Spanish inquisition when they said ‘show him the [torture] instruments.’

“It would massively impact the business – think about the share of imported material in automotive components. That would be unthinkable.

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“It would concern the business model of most manufacturers. There is a huge variety of possibilities – high import tarrifs [for example]. If Western businesses reduced their presence or people would – in extreme – leave Russia – industry [would be] where it was before they came.”

Schreiber noted the importance of the auto industry in Russia and despite the speculation concerning any political sabre rattling, maintained The Kremlin understood the role of the industry in being a backbone of the country’s manufacturing base.