ANNOUNCEMENT 15 Jan 2014

In January 2014, 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: 15 Feb 2014 | Removal date: open ended
Still in force

Financial grant

With Decree 29 of 15 January 2014, the Russian government approved the allocation from the federal budget of 50.4 billion Roubles (USD 1.4 billion) in 2014; 54.1 billion (USD 1.5 billion) in 2015; and 57.9 billion (USD 1.6 billion) in 2016 to Russian manufacturers of motor vehicles for partial coverage of their expenses for jobs preservation.
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).

AFFECTED SECTORS