IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 23 Jul 2013 | Removal date: open ended
Still in force

Financial grant

On 10 July 2013 the Upper House of the Russian Parliament approved Law "On some measures of state support for certain categories of producers of motor vehicles, their assembly components and aggregates", and forwarded it for final approval to the President of the Russian Federation, Mr Vladimir Putin.
 
This law forms a part of the action plan targeting the adaptation of certain sectors of the Russian economy after its accession to the World Trade Organisation. The law stipulates that manufacturers (domestic and foreign) of cars and car components, operating in industrial assembly regime, will receive state support.
 
This state initiative is concretely motivated by the fact that from 1 July 2018 Russia will have to cancel the lowest tariffs for auto components that automakers import into the country, which they subsequently use in the car assembly process in their plants. However, a number of investment agreements were concluded for a period up to 2020.
 
Therefore, in order automakers not to incur losses in the time period 2018-2020, they will be provided with state support in the form of fiscal subsidies or "other forms foreseen by the legislation of the Russian Federation."
 
While foreign investors can benefit from these subsidies along with domestic producers, manufacturers that import cars and car components in Russia are disadvantaged.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other

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