Russia agrees with Chinese automakers to increase localization and promises equal conditions for all players - Manturov

BEIJING. May 17 (Interfax) - Russia is offering equal conditions for the work of all automakers, Russian and foreign, who are ready for take the next step toward localization, and this includes Chinese automakers, Russian First Deputy Prime Minister Denis Manturov told reporters.

Meanwhile, the key requirement is the gradual localization of both assembly production and the production of components, he said, noting that an agreement of this type has been reached with companies from China.

"Today we agreed on the rules for both the gradual localization of both automotive components and the localization of automotive platforms themselves. Therefore, we have the same rules for everyone," Manturov said.

He said that the level of localization in the automotive industry is assessed using a point system and the development strategy of the Russian automotive industry provides for a gradual increase in the requirements for the number of points scored.

"This is spelled out in the strategy of the auto industry: a point system and increasing points, first of all, in relation to automakers. Moreover, an automaker can be both foreign and Russian. Therefore, if a Russian automaker that has acquired a production site expects that it will maintain production, but not will increase localization annually, then, in fact, it will not receive any state support," Manturov said.

He commented on statements made by Russian President Vladimir Putin the day before that Russia welcomes the success of the Chinese automobile industry in its market. "We are glad to cooperate with the Chinese auto industry, because at a certain moment, when the Western majors, which had been creating their own localized production for years, and highly localized production, for some models up to 80%, disappeared overnight, our Chinese partners supported us," the First Deputy Prime Minister said.

At a press conference following Chinese-Russian negotiations on Thursday, Putin said that Russia is interested in the presence of Chinese automakers in the Russian market and intends to expand cooperation. "We welcome cooperation with our Chinese friends in the field of automobile production, where they are achieving clear, completely obvious successes and advantages in competition, in fair competition. We welcome the cooperation and will develop it further," he said.