ANNOUNCEMENT 01 Nov 2013

In November 2013, the government of the Russian Federation announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Nov 2013 | Removal date: 31 Dec 2014
Still in force

Localisation incentive

Rossiyskaya Gazeta (an official newspaper of the Russian Government), Issue 6131 of 18 July 2013 has reported that in November 2013 the government will approve the rules for a federal subsidy whose purpose is to reimburse selected banks for car loans extended to physical persons during 2013-2014. The state support programme shall be in force for 18 months.
 
The price of a car whose purchase will be subsidised by the government must not exceed RUB 750,000. The issued bank loans must be with a maximum maturity of 36 months. The government grant will cover two thirds of the refinancing rate at the date of the issuance of the loan. "The subsidies to '...' banks will ease the borrowing costs for citizens and will reduce the interest rate to an average of 10-11 per cent," - says the analyst of "Avtostat" Sergei Udalov.
 
The list of locally-assembled car models eligible for the state programme for preferential car loans comprises: Chevrolet Niva, Chevrolet Cruze (not all configurations), Chevrolet Aveo, Chevrolet Cobalt, Citroen C4 (not all configurations), Daewoo Nexia, Daewoo Matiz, Ford Focus (not all configurations), Hyundai Solaris, KIA Rio, KIA CEE'd (not all configurations), LADA Granta, LADA Kalina, LADA Priora, LADA Largus, LADA 4x4, LADA Samara, Mazda3 (not all configurations), Mitsubishi Lancer (not all configurations), Nissan Note, Nissan Tiida (not all configurations), Opel Astra (not all configurations), Peugeot 408 (not all configurations), Renault Duster, Renault Logan, Renault Sandero, Skoda Octavia (not all configurations), Skoda Fabia, Toyota Corolla (not all configurations), Volkswagen Polo.
Also included in the list are all models of Bogdan, UAZ, ZAZ, and the models entering the Russian market in 2013: Nissan Almera, Citroen C-Elysee, Peugeot 301.

AFFECTED SECTORS