Russia: Domestic car industry deal with the Russian Railways (State owned company)

Measure #1478 | Published 3 Jun 2010 ▲

Description

In January 2010, the Russian Railways (100% state owned company), AutoVaz and RailTransAuto have signed an agreement according to which the Russian domestic car producers  can transfer their light cars to the Russian Far East according to the reduced rates. The Federal Service on Tariffs has agreed with this arrangement.
The special discount is valid for the distance from 1,000 km to 3,000 km. Thus, AutoVaz agreed to increase yearly transfer from current 54,000 cars to 350,000 cars. This will save AutoVaz up to 500 million rubles (12,5 million Euros) a year.
The government decree # 194 from 4 March 2009 introduces government subsidies up to 2 billion rules (50 Million Euros) to transfer domestically produced cars to the Russian Far East for free for the car manufacturers. The list of the autos also includes foreign cars produced at the territory of the Russian Federation such as Ford, Fiat, Kia and others.

 

Any Evidence-Based Deliberation:

Question Result
Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?
Is there any evidence that alternatives to the proposed measure were considered?
Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?
Was such evidence identified?
Is such evidence publicly available?
Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?
Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?
Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?
Did the government state its intention to review the measure within one year of implementation?

Implementing Jurisdiction:

Affected Trading Partners:


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Measure type:

Affected Sectors:

Affected Tariff Lines:

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Date Discovered:

Implemented: No

Date of inception: 11 Mar 2009

Duration: 9 months

GTA Evaluation: Red

Source:

the Russian Official Newspaper from 27 January 2009 # 4835 - http://www.rg.ru/2009/01/27/zd-auto.html
Government Decree 194 from 4 March 2009- http://www.rg.ru/2009/03/11/postanovlenie-dok.html

Government Response:

Glossary of trade terms