Russia will introduce new rules for automobile industrial assembly within the year

Russian Interfax reported that the new rules governing the industrial assembly of cars in Russia will take effect within the year. At present, the Ministry of Finance, the Ministry of Economic Development, and the Ministry of Industry and Trade of Russia are coordinating the final introduction of the new rules.

The Ministry of Industry and Trade suggests that relevant companies should modernize their existing production capacity and ensure that the annual production capacity of the automobile will not be less than 300,000 within 4 years after the supplementary agreement becomes effective, and that the company’s production localization level will not be less than 60% after 6 years. In the future, it will no longer be based on whether the list of imported parts has fallen to 30%, but on the basis of the average added value created by all models and series of cars produced in Russia to measure the level of localization. It is suggested that the following investment thresholds be set for automobile manufacturers investing in Russia: the investment in the new plant will be 750 million U.S. dollars, and the modernization of the existing production capacity will be 500 million U.S. dollars.