Car manufacturers were allowed extension to the completion period of localisation obligations

Car manufacturers were allowed extension to the completion period of localisation obligations

Gazeta.ru – The car manufacturers, making production in Russia under the terms of the industrial assembly agreement, have received extension to the fulfillment period of obligations on localisation.

“Car manufacturers were allowed extra time to fulfil their obligations on localisation, although the final criteria will remain unchanged” – as reported by Gazeta.Ru, based on the Ministry of Industry and Commerce press office. Accordingly, the car manufacturers will need to fulfil the initially signed terms of the industrial assembly regime agreement by the year 2018. The decision has been made on a temporary basis, as part of the anti-crisis measures.”

The main changes to the agreement terms are as follows: from now on, the production aimed at export markets will be included in localisation rate calculations, as well as the manufactured, but unsold products stored in warehouses.

As further explained, the changes will enable the car manufacturers to neutralise the effects of the future currency fluctuations and increase export potentials, thus making a contribution on the efforts to overcome the crisis in the Russian automotive market. The policy of deeper localisation will be maintained, considering the advantages the highly localised models have in the Russian market, in addition to their relative independence from exchange rates.