Russia’s ambassador to Ethiopia Evgeny Terekhin has said that Russian automakers KAMAZ and GAZ are preparing to launch vehicle assembly operations in Ethiopia.

The diplomat noted that talks on localizing production are progressing in a practical manner, taking into account Ethiopia’s regulatory requirements, The Caspian Post reports via Russian media.

Under current rules, the Ethiopian government allows the import of only electric and gas-powered vehicles, making gas-fueled vehicle assembly the most promising option - an area where KAMAZ and GAZ hold strong positions.

Terekhin added that UAZ is also showing interest in the Ethiopian market. Russian manufacturers are now completing feasibility studies to ensure they enter the market with competitive products. A major incentive was Ethiopia’s October decision to abolish taxes on natural gas-powered vehicles, which the ambassador described as a “unique window of opportunity”. He said Russian companies are working to ensure their assembly lines become among the first to operate in this emerging segment.

Ethiopia has long been viewed by Russian automakers as a promising regional hub. In 2023, AvtoVAZ signed an agreement with Ethio Engineering Group to launch production, with plans to export vehicles to neighboring markets such as Sudan, Kenya, and Somalia. However, the project did not move forward. Later, Ethiopia’s ambassador Genet Teshome Jirru said AvtoVAZ would begin producing electric cars in Ethiopia by the end of 2025 - a claim the company later denied.

UAZ also signed an agreement with Ethiopian partners back in 2021, but production never started. KAMAZ and AvtoVAZ revisited plans to build assembly lines in Ethiopia in 2023, though those initiatives were not realized at the time.