The Ministry of Industry and Commerce has approved the Special Investment Contracts of Sollers and Toyota
Autostat.- The Interdepartmental Commission of the Russian Ministry of Industry and Commerce on Special Investment Contracts (SPIC) has taken a decision to support the projects of Sollers and Toyota on June 4. The terms of both approved SPICs are scheduled until the end of 2028, as stated by the press office of the ministry. As noted, the approval of the projects will not only enable a stable long-term growth in car production, but also provide additional orders for car component manufacturers.
Sollers plans to implement the project on the development of the production of the new model lines of UAZ and Ford Transit in Ulyanovsk region and Tatarstan, on the basis of Ulyanovsk Automobile Plant and Ford Sollers Elabuga. The investor will organise the cooperation of UAZ, UAZ Car Components, Ford Sollers Elabuga and RosALit Foundry in the project. The investment amount will be 7.5 billion rubles. The application to the standard incentives is planned within the framework of the Special Investment Contracts, with regard to the supported project, which includes guarantees on the stability of the regulatory and tax burden.
Another SPIC in automotive industry is planned to be signed with Toyota Motor. Within the scope of the aforementioned project, the investor plans to update the model range of Toyota vehicles and modernise the facilities for production in St Petersburg. The investment in the project is estimated as 20 billion rubles, for the duration of 10 years. At the same time, the SPIC with Toyota does not provide for a significant increase in localisation, production of engines or other new technologies that could be implemented by Russian suppliers. Under the new system of government support, there are significant Special Investment Contracts obligations that will allow the holders of such contracts to qualify for a wide range of state support measures, such as government procurement. Therefore, Toyota will not be able to benefit from support measures at an equal level with other car manufacturers, without a significant increase in localisation.
