Russian government may increase tariffs on car components

Russian government may increase tariffs on car components

Izvestiya – Russian ministry of industry and commerce has proposed a series of measures against foreign products, within the frame of the import substitution programme. As assessed by the ministry, an implementation in favour of domestic products in government purchases in nearly all branches of industry is inevitable.

According to Izvestiya newspaper, the tariff procedure on the import of car components with domestic analogues in the automobile industry is being examined (10-20%). Currently, the manufacturers, who signed the industrial assembly regime agreement, pay tariffs between 0-5% during component imports. At times, this ratio goes up to around 40% in spare part imports. The ministry of industry and commerce has stated that all measures concerning the support of domestic companies and import restrictions will be scheduled by the government.

The deputy minister of industry and commerce: Gleb Nikitin has said the following: “Import substitution requires the development of new production technologies. These are financed by credits, as well as the equities of the investors. The total volume of the resources is estimated as 1.26 trillion. We predict the total amount to reach 1.5 trillion rubles, following an additional government support of 235 billion.”

The Russian ministry of industry and commerce predicts that at least 800 new products will be launched in the country until 2020. However, the possibility of a decline in the predicted amount is not being ruled out, due to the sanctions.