The Russian government is reportedly planning to tightening conditions for foreign carmakers producing automobiles in Russia under the industry assembly regime by the end of September.

Prime-Tass reported that Alexei Rakhmanov, a department director at the The Russian Industry and Trade Ministry, told reporters that the plans have yet to be agreed with the Finance Ministry and the Federal Customs Service.

The industry assembly regime allows foreign carmakers to import auto components into Russia under lower customs duties. In exchange, foreign carmakers have to launch facilities for welding and painting the car body and car assembly within seven years, and reduce the list of imported components by one third.

New rules would set tougher localisation rates and raise the minimum investment levels for foreign OEMs, the report said.