Serbian Fiat still cannot enter Russia without customs duty

Despite expectations and announcements, Serbia will not receive permission from Russia for duty-free export of Fiat 500 L cars produced in Kragujevac in the foreseeable future, Belgrade press reported, citing sources in the Serbian and Russian governments, reports the Patria news agency.

To expand the list of products sold duty-free in Serbia and Russia under the free trade agreement from 2000, approval from the Council of the Eurasian Economic Community, headed by Russia, is necessary, as reported by the Belgrade daily Blic.

“Without the consent of all members of the customs union, which consists of the Russian Federation, Belarus, Kazakhstan, and recently Armenia, there is no decision on duty-free trade in cars. According to our information, some members of the customs union do not agree to implement the announced decision,” a source in the Serbian government told Blic.

That there is nothing from this business for now is confirmed by Minister of Trade and Telecommunications Rasim Ljajić, who was previously very optimistic that the Fiat 500L, produced in Kragujevac under an Italian license, would "be sold on the Russian market without customs duty this year,” writes Belgrade's Blic.

Sources from Moscow do not rule out the possibility that this issue will again be on the agenda for the announced meeting of Serbian Prime Minister Aleksandar Vučić with Russian Prime Minister Dmitry Medvedev and President Vladimir Putin.

The possibility of importing 10,000 Fiat cars into Russia was announced by Putin during his visit to Belgrade in November 2014, responding to Vučić's request.

“You know that we produce Fiat. It is our vehicle made in Kragujevac, and if you can enable Serbia to export these vehicles to the Russian Federation,” Vučić said to Putin at the time, confirming earlier announcements that Serbia would ask the Russian head of state to approve the import of 10,000 Fiat 500 L cars for the Russian market.