Russian Industry and Trade Ministry proposes extending application of disposal fees beyond automobile industry

MOSCOW. July 1 (Interfax) - Disposal fees have proved to be an effective protection measure within the automobile industry and could be extended to other industries, Russian Industry and Trade Minister Anton Alikhanov said.

"I can't bypass the issue of dumping by importers. In terms of dumping, we can see other serious risks posed to macroeconomic conditions by the various countries supplying products to us. And here we can see, of course, that the disposal fee has done a good job. It really is a good protection mechanism, and one that ultimately allows us to build up our own industry," he said in his speech at a meeting of the Federation Council Committee on Industrial Policy on Tuesday.

"Apart from the fact that it provides us with additional sources of income, it also allows us to encourage domestic production. It is thought that similar approaches could be discussed for other industries, too," the minister said.

The disposal fee is paid by producers and importers of transport means. The state compensates the payments made by Russian automobile manufacturers, which acts as an indirect support measure for the industry.