ANNOUNCEMENT 08 Oct 2014

On 8 October 2014, the Russian government announced a program of consumer subsidies targeting municipalities that buy Russian-made gas-fueled buses and vehicles for public and utility services.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of Russia. 2014. Decree dated 8.10.2014 N1027. Постановление Правительства РФ от 8 октября 2014 г. N 1027
"Об утверждении Правил предоставления субсидий на закупку автобусов и техники для жилищно-коммунального хозяйства, работающих на газомоторном топливе, в рамках подпрограммы "Автомобильная промышленность" государственной программы Российской Федерации "Развитие промышленности и повышение ее конкурентоспособности" ("On approval of the Rules for the provision of subsidies for the purchase of buses and equipment for housing and communal services operating on gas-engine fuel, under the subprogram" Automotive industry "of the state program of the Russian Federation" The development of industry and improving its competitiveness "), https://base.garant.ru/70761138/

Budget allocation: Decree 242 dated 17-03-2015. "On the provision of subsidies for the purchase of buses and equipment for housing and communal services, powered by gas engine fuel, under the subprogramme" Automotive industry "of the state program of the Russian Federation" The development of industry and increase its competitiveness " (Постановление Правительства РФ от 17 марта 2015 г. N 242 "О предоставлении субсидий на закупку автобусов и техники для жилищно-коммунального хозяйства, работающих на газомоторном топливе, в рамках подпрограммы "Автомобильная промышленность" государственной программы Российской Федерации "Развитие промышленности и повышение ее конкурентоспособности"), https://base.garant.ru/70896854/

Inception date: 08 Oct 2014 | Removal date: 11 Jul 2016

Localisation incentive

On 8 October 2014, the Russian government announced a program of buyer subsidies targeting municipalities that buy Russian-made gas-fueled buses and vehicles for public and utility services. The federal government discharges per-unit subsidies to co-finance acquisitions of buses, cars and special-purpose vehicles for public and utility services. Only vehicles running on methane produced in Russia after 1 January 2014 qualify for subsidization. The amount of per-vehicle subsidy is capped at 3 million rubles (USD 75 thousand) for the most expensive type of bus and 3.8 million (USD 95 thousand) for the most expensive type of special-purpose vehicle. Passenger car and smaller unit subsidies are around 100-180 thousand (USD 2.5-4.5 thousand).

In March 2015, the Government allocated 3 billion rubles (USD 49 million) for the program.

Starting 2016, the program was modified from a consumption subsidy targeting Russian municipalities to a producer subsidy, conditional on a sales discount and transferred directly to producers (see related acts).

AFFECTED SECTORS