Industry and Trade Ministry intends to keep scrappage fee extension for Russian automobile companies in 2026

MOSCOW. Nov 25 (Interfax) - The Russian Industry and Trade Ministry plans to offer an extension on scrappage fee payments to Russian automobile companies which have special investment contracts (SPICs) in 2026 as well as this year, Deputy Industry and Trade Minister Albert Karimov said at a roundtable meeting of the Federation Council.

The deferral of the scrappage fee payment for automobile companies is a measure which has been used in recent years to solve the problem of a working capital deficit among companies from the sector. It has also been applied this year - companies who have signed SPICs can pay the scrappage fee for the fourth quarter of 2024 and the first, second and third quarters of 2025 at any point before the middle of December 2025.

"Among important measures and one which is already becoming a tradition for our localized producers is the extension on the scrappage fee payment. This matter will continue to be discussed, and we are expecting to implement the mechanism next year. We are currently working to properly establish the necessary regulatory framework," Karimov said on Tuesday.

As was reported in the materials on the Russian draft federal budget for the next three years (2026-2028), scrappage fee payments charged on imported and nationally produced wheeled vehicles will exceed 1.1 trillion rubles in 2025 and to almost 1.7 trillion rubles in 2026, including payments for domestically produced vehicles of 705 billion rubles and almost 1.1 trillion rubles respectively.