Russian automobile industry

Russian Prime Minister, Dmitry Medvedev, signed a decree in March 2015 in the allocation of 10 billion Rubles for compensation of expenses regarding the the production of cars. It will probably permit to present additional load of manufacturing capability in the first quarter of 2015 within the amount of about 110 thousand automobiles, maintain jobs and staff members of enterprises of automotive and associated sectors. Furthermore, the relevance among these measures is a result of the reality that in 2014 the price of cars manufactured in Russia has increased substantially as a result of increased charges for the purchase imported components for assembly of automobiles by Russian automakers due to variations of forex change prices and large inflation in Russia.

By May 2015 the Russian municipal aviation business would receive the biggest amount of condition support when compared to the united states’s various other machine manufacturers. For example, 28.5 billion rubles ($553 million) had been assigned to offer the automotive business (considering hawaii recycling system including programs for preferential car loans and leasing). Giving support to the biggest manufacturer of cargo automobiles and tanks, Uralvagonzavod, could cost hawaii 105 billion rubles ($2 billion).

Relating to a Ministry of Industry and Trade quick prepared the federal government, the quantity of subsidies allocated in 2012 (3.9 billion rubles) had been almost 3 times below the amount approved by the federal government in August of 2012 (9.8 billion rubles). Experts attributed the slices to your Ministry of Finance’s aspire to lower already tight public investing, plus to the fact that vehicle makers seem to have effectively emerged from crisis. The government had already authorized the considerably bigger budget subsidies proposed because of the Ministry of business and Trade; the Decree on Offering Subsidies to Russian vehicle Manufacturing Organizations was arranged on 13 August 2012. The subsidies were expected to attain 9.8 billion rubles in 2012, 7.6 billion rubles in 2013, 6.6 billion rubles in 2014 and 5.6 billion rubles in 2015.