Russian Automaker Prepares Strategy To Overcome US And NATO Embargo Threats

Lada Avtovaz, may not produce if it lacks chips. (photo: twitter)

JAKARTA - Russia's biggest automaker, Avtovaz, which is controlled by France's Renault, is looking to secure alternative supplies of electronic chips if US sanctions restrict shipments of goods or an embargo to Moscow.

Chip has become an absolute necessity for the car industry in various countries. Without the chip, now the car will not function, including the car made in Russia even once.

"Of course, we are also investigating the possibility to find alternatives in the case of sanctions," said Nicolas Maure, CEO of Avtovaz, Monday, February 21 as quoted by Reuters.

Although he did not specifically reveal his plan, Maure is sure that he will be able to overcome it if the embargo of the US and other NATO countries is actually implemented.

The White House has told the US chip industry to be ready to impose restrictions on exports to Russia if Moscow attacks Ukraine. This policy, including potentially blocking Russia's access to global electronics supplies.

These restrictions and embargoes are expected to hit Russian industry, especially those related to technology. The export embargo to Russia is believed by NATO to be more beneficial than an open war against Russian troops in Ukraine.

In the long term, the embargo on technology, such as chips, will certainly hit many industries in Russia and make the chip shortage, which is a world problem, even more, severe for the country led by Vladimir Putin.