ANNOUNCEMENT 25 Apr 2018

On 25 April 2018, the Russian Government extended the 2016 the program of subsidies to the manufacturers of buses and other public and utility service vehicles running on gas engines, to cover subsidy allocations in the year 2018.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of the Russian Federation. 2018. О внесении изменений в постановление Правительства Российской Федерации от 12 июля 2016 г. No 667 (On Amendments to the Resolution of the Government of the Russian Federation of July 12, 2016 No. 667) Decree 504 dated 25 April 2018, http://government.ru/docs/32488/

Inception date: 25 Apr 2018 | Removal date: open ended

Production subsidy

On 25 April 2018, the Government of Russian once again amended Decree 667 dated 12 July 2016, regulating subsidies to the manufacturers of gas-fueled buses and vehicles used for public and utilities services. The main purpose of amendment is to extend the program into 2018. 

The goal of the subsidy program is to enable manufacturers to offer price discounts to the buyers of the vehicles and incentivize the production of additional 2500 units in 2018. Only vehicles produced in Russia after 1 January 2017 qualify for subsidization. 

The amount of subsidy is equal to the amount of the discount offered on each unit sold, up to the limits set by the Government. Per-vehicle limits for 2018 are adjusted slightly downward compared to the previous year (ranging from 210 thousand -3.5 million rubles  in 2017 to 115 thousand and 3.4 million (USD 1842- 54500) in 2018, depending on the type and size of the vehicle). The 2018 amendments distinguish between vehicles running on compressed and liquified natural gas (CNG and LNG) and offer more generous subsidies to the latter type. 

With the previous amendments, in 2017, the the list of eligible vehicles has been expanded to cover small passenger vehicles (maximum 9 seats) and small trucks (maximum 2.5 tonn load). Only vehicles bought for the use of public services and utilities services are eligible for the subsidy.

 

AFFECTED SECTORS