Russian automaker UAZ (Ulyanovsk Automobile Plant) plans to move from importing vehicles to local production in Ethiopia, according to The Reporter. The company is in negotiations with the Ethiopian government to establish an assembly plant aimed at producing both passenger SUVs and specialised vehicles designed for Ethiopian terrain.

Preparatory work for the partnership dates back to 2021, when UAZ signed an initial agreement with Ethiopian firm Bazra Motors to set up assembly operations in Kombolcha. Although timelines shifted over the years, the automaker’s renewed 2026 plan demonstrates a reinforced commitment to the local market.

“The large Ethiopian market of 130 million people is of strategic interest,” Russian Ambassador Evgeny Terekhin said, noting that the initiative is intended to support Ethiopia’s industrialisation efforts and help Russian vehicles “take their rightful place on Ethiopia’s roads.”

In late 2025, Ambassador Terekhin confirmed that UAZ, together with AvtoVAZ, had been conducting feasibility studies to comply with Ethiopia’s regulatory environment, including recent incentives for green energy and natural gas-powered vehicles. The Russian Embassy in Addis Ababa highlighted the project on social media, framing it as part of broader diplomatic efforts to strengthen economic ties between the two countries.