AvtoVAZ representatives will visit Ecuador in March this year and discuss the resumption of sales of Russian cars to the country, according to the Ecuadorian Ambassador Juan Fernando Holguin Flores. Despite sanctions, and the subsequent difficulties with payments and logistics, Russia remains an important trading partner of Ecuador, with Russia one of the main buyers of Ecuadorian bananas, while the country is also interested in increasing cocoa exports.

Negotiations between Moscow and Washington may also have a positive effect on trade cooperation between the countries, given the relatively pro-American stance of Quito’s foreign policy.

Flores stated that “In March, a group of AvtoVAZ representatives will come to Ecuador to study the possibility of returning Lada cars to the Ecuadorian market, as was the case several years ago. Russia is an important trade partner for us — we export bananas, fresh flowers, and cocoa. Our exports have reached US$1 billion in value.” 

In the late 1990s, AvtoVAZ managed to conclude an agreement with a local company to organize an assembly plant for two models in Ecuador: the VAZ-2106 and the VAZ-21214 Niva. The car was then called the Lada Riva in the Latin American country. The enterprise operated for several years, but later closed. In 2012, AvtoVAZ announced plans to supply Lada models to Peru, Ecuador, and Bolivia.

According to Flores, Quito is not planning to export new goods to Russia at this moment yet hopes to increase the volume of already established deliveries. In banana exports, which are already at about  1 million tons annually, the market is already fulfilled, however in cocoa exports to Russia there is still huge potential. From January to July last year, Ecuador exported more than 200,000 tons of cocoa to various countries, worth about US$1.5 billion. The Russian market accounts for only 13.7% of this, with Russia importing most of its cocoa from Côte d’Ivoire. Ecuador wants to compete.

There are also good prospects for Ecuadorian exports of fresh flowers, with the launch of direct flights between Moscow and Quito having a positive effect on rose supplies to Russia, with Flores noting that “We hope that we will be able to establish direct air links. This would bring us great benefits in terms of exporting roses to Russia. But this is a long and complicated process.”

Overall, relations between Russia and Ecuador have somewhat strained since Daniel Noboa came to power in late 2023. Noboa sought to get closer to the United States than to Russia, China, and other Latin American countries. However, Noboa was elected for 18 months to complete the presidential term of his predecessor, Guillermo Lasso, who faced impeachment for embezzling the state budget.

That term expires in April with Noboa vying to be re-elected. The vote will take place on April 13.

Meanwhile, with the start of a new Russian-American dialogue, Ecuador’s attitude towards Russia may change, given Quito’s current pro-American course. This will likely have a positive impact on trade and economic ties. A similar scenario may occur in the context of other Latin American countries close to Washington. For example, some of them are now changing their position as concerns Ukraine, which was noticeable in the UN vote on February 24. Then, together with the United States, Argentina did not support anti-Russian resolutions at the General Assembly for the first time since 2022. Brazil, Colombia, Paraguay, Costa Rica, Cuba, the Dominican Republic, El Salvador and Honduras also abstained from the vote.

Many Latin American governments obey the decisions of the United States, however, only Argentina, Ecuador, and El Salvador are specifically connected with President Trump, and these countries will probably build their foreign policy following United States policy. That may lead, for example, to a softening of Argentina’s attitude towards BRICS and especially as Brazil has recently been benefiting from Russian trade and investment.

Further Reading