In January 2014, the government of the Russian Federation announced a change in private-sector financial support.



  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 15 Jan 2014 | Removal date: open ended

Financial grant

With Decree 32 of 15 January 2014, the Russian government approved the allocation from the federal budget of 2.5 billion Roubles (USD 70 million) in 2014, of 2.7 billion (USD 75 million) in 2015, and of 2.9 billion (USD 80 million) in 2016 to Russian manufacturers of motor vehicles for partial coverage of their R&D and testing expenses.
The announced official state goals to be achieved with this state subsidy are:

  • to raise the competitiveness of the local automobile industry;
  • to achieve a share of Russian-made motor vehicles on the domestic market of 80% for cars, 90% for commercial minivans; 85% for trucks; and 99% for buses;
  • to stimulate automotive manufacturing in the Russian regions, including Siberia and the Russian Far East.
  • to increase the value added in the sector to 48% (2.2 trillion roubles). 

Indirectly, this state initiative aims to compensate the Russian manufacturers of motor vehicles for the loss of competitiveness provoked by the introduction of waste disposal (scrappage) fee (see related GTA measure below).