Russian Ministry offers to differentiate aid to car producers

MOSCOW, Oct 19 (PRIME) -- Russia’s Economic Development Ministry wants to split state support to car producers under special investment contracts into categories depending on their plans, according to a letter by the ministry to the Industry and Trade Ministry, seen by PRIME on Friday.

“In order for the Russian car industry to develop comprehensively, we suggest introduction of a flexible approach to support of producers, which envisages the possibility for a car producer to choose the terms of support with corresponding support measures: production of highly technological cars on the Russian territory on conditions of innovative special investment contracts, a gradual growth of local production,” the letter read.

The agreements can include a stipulation to invest at least 10% of revenue in research and development. The products made under the program could be recognized as Russia-made and receive state support.

The ministry also suggested a grace period to the companies whose current agreements of assembly in Russia expire.

End