Government has abolished almost all targeted subsidies for the automotive industry

All targeted subsidies for the automotive industry will be cancelled apart from logistics, as told by the Deputy Prime Minister Dmitry Kozak to journalists following a meeting with car manufacturers. The largest Russian and foreign automotive companies were represented at the meeting, including Avtovaz, GAZ Group and Kamaz.

“There are too many subsidies for the automotive industry: for certification, homologation, alongside other targeted subsidies. There won’t be any targeted subsidies anymore, apart from logistics, which will be provided as long as it’s easily controlled. The deliveries to export markets will be controlled to ensure the competitiveness of the automotive industry products” – Kozak said.

As told by the deputy prime minister, an agreement has been reached on the new parameters of the subsidies for the automotive industry, between the government and the car companies.

“We have agreed on the general terms of support today. I think that the rules will be established soon, literally next week. An agreement has been reached as to the provision of subsidies to new exporters, which will enable them to increase globally competitive production. The support will continue for the existing exporters manufacturing the same goods, in the form of logistics subsidy” – Kozak said.

Special investment contracts will be signed with all car manufacturers, according to Kozak. “We will provide support to all Russian car manufacturers on utilisation fee payments” – the deputy prime minister added.

Source: RusAutoNews.Com