The documents have been drafted by the Russian Ministry of Industry and Trade.
The federal law On the Federal Budget for 2014 and the Planned Period of 2015 and 2016 provides for federal Treasury subsidies to Russian manufacturers of motor vehicles with a view to covering part of their expenses on the following:
- R&D and testing (2.5 billion roubles in 2014; 2.7 billion in 2015; 2.9 billion in 2016);
- energy usage by energy-intensive car makers (5.9 billion roubles in 2014; 6.3 billion in 2015; 6.8 billion in 2016);
- issuance and fulfilment of warranties on motor vehicles meeting the Euro 4 and Euro 5 standards (25.2 billion roubles in 2014; 27 billion in 2015; 29 billion in 2016);
- maintenance of jobs (50.4 billion roubles in 2014; 54.1 billion in 2015; 57.9 billion in 2016).
The signed resolutions establish rules for disbursing federal Treasury subsidies to partly cover related expenditures made by automotive manufactures starting from 1 January, 2014.
The decisions made are aimed at achieving, by 2020, the following targets set in the Automotive Industry subprogramme, of the state programme Advancing Manufacturing Industries and Raising Their Competitiveness:
- raising the share of VAT in the sector to 48% (2.2 trillion roubles);
- bringing the production of domestic cars to 3.1 million per annum; of commercial minivans to 280,000; of trucks to 280,000; and of buses to 35,000;
- bringing the share of Russian-made motor vehicles at the domestic market to 80% for cars, 90% for commercial minivans; 85% for trucks; and 99% for buses;
- building up the car fleet to the level of 363 automobiles per 1,000 residents;
- stimulating automotive manufacturing in the regions, including in Siberia and the Russian Far East.
