Translated by Ollie Richardson for Fort Russ
19th January, 2016
The President of Russia, Vladimir Putin, has instructed the government to develop and approve a strategy of development of the automotive industry in Russia until 2025, reports the press service of the President of the Russian Federation. Vladimir Putin instructed to submit proposals on state support to the automotive industry depending on the level of localization of their products.
The strategy is about the incentives for localization of production of cars and car parts in Russia, as well as an increase in exports and the purchase of Russian automobile technology by state-owned companies and their subsidiary units.
The government also requested to prepare offers in the plan of creation of normative legal base for the gradual renewal of the automobile fleet in Russia.
The President's order must be made before 1 March 2016. Responsibility for the execution of the order was given to Prime Minister of Russia Dmitry Medvedev:
"The Government Of The Russian Federation:1. To develop and approve strategy of development of the automotive industry and automotive component production for the period up to 2025, which is aimed at promoting import substitution of products and technologies and providing, including:
a) forecasting the parameters of the market and export of automotive vehicles, ensuring the effective functioning of the automotive industry's current economic trends (with the allocation needs of the state and municipal authorities to provide passenger and freight transport);
b) priority directions of scientific-technological development of the Russian automotive industry and the development of perspective samples of vehicles with regard to the world tendencies of the transition to the serial production of electric vehicles;
c) support mechanisms for the development of the automotive industry aimed at including the increase in exports and the share of purchases of automotive vehicles of Russian origin companies with state participation and the subjects of natural monopolies;
d) mechanisms for the development of automotive components production and localization of automobile production on the territory of the Russian Federation;
e) linkages between development activities of the automotive industry and automotive components production with the activities for the development of related industries, including metallurgical, chemical, electrical.
2. To ensure that changes in the sub-program "Automotive industry" of state program of the Russian Federation "Development of industry and increase of its competitiveness" aim:
a) at the inclusion of the sub-programme of actions for implementation specified in paragraph 1 of this list of instructions strategies to ensure the achievement of its indicators and parameters;
b) to improve given current trends of economic mechanisms of allocation of automotive technology to the products of Russian origin and determine the level of localization of production of such equipment with the use if necessary of the aggregate component;
c) the development of mechanisms for allocation of components to products of the Russian origin and determine the level of their localization;
d) to stimulate localization of production of automotive components, parts, raw materials, materials and technologies, and the use of automotive manufacturers of the product;
e) on increase of level of processing has lost the consumer properties of vehicles.
3. In order to ensure the competitiveness of the Russian automotive components, parts, raw materials and materials to take measures to:
a) improve the relevance of the organizations of the automotive industry data about the localisation level of their products;
b) assistance in long-term contracts between automotive companies and Russian manufacturers of automotive components, parts and raw materials throughout the chain production cycle.
4. To submit proposals on the formation of the regulatory legal base for the gradual renewal of the automobile fleet.
5. To submit proposals on measures of state support of automobile industry organizations, depending on the level of localization of their products, and ensure registration in the Russian Federation of the rights to scientifically-technical activityresults.
Report up to 1 March 2016,
Responsible: D. A. Medvedev".
On January 15th, 2016, the head of the Ministry of Industry and Trade of Russia, Denis Manturov, at a meeting chaired by Dmitry Medvedev announced that the government will direct support to the Russian car industry in the form of an additional 5 billion rubles in 2016.