The Ministry of Trade and Industry has already prepared a corresponding draft: the document was discussed with industry representatives.
All automobile companies engaged in the production, import and sale of cars in the Russian Federation must pay a recycling fee. At the same time, local producers (subject to a high degree of localization) receive a large part of the amount paid back in the form of subsidies. The companies were asked to give them a deferment in paying the recycling fee this year, and the relevant department has already prepared a corresponding proposal.
As Kommersant reports, the Ministry of Trade and Industry of the Russian Federation has developed a document proposing a postponement of the payment deadlines for the disposal fee for the fourth quarter of 2023 and the first and third quarters of next year to December 2024. It is worth noting that if approved, this will be the second delay in a row. Now this project is at the stage of interdepartmental approval, it has already been approved by the Ministry of Economy.
The publication noted that the recycling fee paid for production in the Russian Federation in 2023 was estimated in the draft budget at 251.4 billion rubles, and for 2024 this amount is equal to 411.9 billion rubles. Automotive companies noted that recycling fees account for a significant portion of their costs.
Representatives of AVTOVAZ, KAMAZ and Moskvich spoke about the need for another postponement during parliamentary hearings in the Federation Council. In particular, AVTOVAZ President Maxim Sokolov explained the need to use this measure by saying that the manufacturer “is in dire need of working capital, especially given the high key rate.” He explained that the consequence is a high lending rate, and added that the deferment will “reduce the negative effect of sanctions.”
The Ministry of Industry and Trade noted that the deferment from paying the recycling fee (if approved) will apply to those companies that produce cars in the Russian Federation under special investment contracts (SPIC). The publication's source reports that the proposed measure will allow companies to use unpaid funds, including for the purchase of components. He explained that “some suppliers have to pay advances in order for production to start.” Also, according to him, money is needed for trade with China. Last year, the government explained the need for a delay by creating a supply of components for the uninterrupted operation of production lines at local factories.
According to Sergei Udalov from Avtostat, it is necessary to reduce the burden on automakers in the Russian Federation. He explained that the production preparation cycle has significantly increased in terms of time since 2022. This is explained by the lengthening of supply chains, as well as the fact that in order to receive components, customers (local manufacturers) need to advance supplies in advance.
We would like to remind you that recycling collection rates increased noticeably on August 1 of this year. This especially affected importers. As a result, parallel import has become a less profitable scheme, imported cars have become more expensive, and car dealers have now switched to supplying cars to the Russian Federation on pre-orders.