Russia’s industry and trade ministry and economic development ministry have agreed on revised rules for foreign vehicle assembly in Russia, economic development minister Elvira Nabiullina said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the rules, foreign auto makers producing 300,000 vehicles per year in the country are expected to be exempt from import tariffs on auto components for eight years, she said. Under the current rules, foreign automakers enjoy discounted tariff rates of no more than 5%, compared with the standard rate of 5% to 15%.
According to the revised rules, 30% of automobiles assembled by foreign automakers in Russia should be equipped with Russian-made engines, she said.
Meanwhile, Alexei Rakhmanov, head of the industry and trade ministry’s auto industry department, said the ministry could void some auto assembly agreements with auto producers that are not being implemented. These include an agreement with Ukrainian automaker Bogdan on bus assembly in the Nizhny Novgorod Region, he added.
Meanwhile, the Russian government plans to keep import tariffs on automobiles unchanged until 2014–2015, Rakhmanov added.
The recent hike in the import tariffs on automobiles has caused a considerable public backlash. In March, deputy economic development minister Andrei Klepach said the government was considering cutting the tariffs.
