Russian OEMs will receive 1,8 billion USD industrial subsidies in 2018

Russian OEMs will receive 1,8 billion USD industrial subsidies in 2018

RNS – The Russian Ministry of Industry and Commerce will allocate more than 102 billion rubles (appox. 1,8 billion USD) of industrial subsidies for car manufacturers in 2018, as told by the minister Denis Manturov.

“We will support the automotive industry not in two, but four directions. There are certain areas of support for the businesses: support for jobs, on costs for compliance with Euro-5 standards and energy resources. The amount of support will exceed 102 billion rubles this year” – said Manturov, as reported by RNS, according to information given by the official representative of the ministry.

As noted by Manturov, the targeted support programmes launched during the second half of 2017 have attracted buyers to the market, who couldn’t afford to buy a car previously, including young people and large families.

“In the light of the existing positive experiences, the measures will be the key in the support for demand in the automotive industry in 2018, the investment in which will amount to 13,5 billion rubles and along with an additional 10,5 billion rubles for the compensation on the interest rates on the credits issued during the previous years. We have also extended the support measures on the demand for gas vehicles this year, in the amount of 2,5 billion rubles, including CNG automobiles” – added the Russian Federation minister of industry and commerce.

The head of the ministry has also reminded about the continuation of the programmes for the subsidy of interests on investment loans (anticipated as 4,37 billion rubles) and the support for projects on the priority areas of the development of the automotive industry.

“We have provided or plan to provide financial support on a total number of 16 projects in 2017-18 period, the total monetary value of which exceeds 1.3 billion rubles. The number of projects may increase, on the other hand, including a variety of new technological areas. Considering the support of demand, as we repeatedly stated in 2018, the fleet utilisation programme will discontinue, due to the fulfillment of the key tasks. More than 1,2 million vehicles have been sold with the help of the measures taken, over the last three years” – Manturov said.