Russian govt grants customary deferral until end of year for payment of scrappage fee for major automotive equipment manufacturers
MOSCOW. Feb 13 (Interfax) - The deadline for paying the scrappage fee for Q4 2025 and for Q1-Q3 2026 for major Russian manufacturers of automotive equipment, agricultural machinery, construction, road-building and municipal equipment as well as trailers has been postponed to December 2026.
The corresponding amendments to resolution N1291 of December 26, 2013, and resolution N81 of February 6, 2016, have been approved by the government, the office of First Deputy Prime Minister Denis Manturov said.
"This support mechanism traditionally helps ensure the stability of the financial activities of enterprises in the industry. Furthermore, in the current conditions of expensive borrowed financing and the need for enterprises to service their loan portfolios, the decision made will free up working capital for the implementation of investment programs, advanced procurement of components and timely payment of wages to employees, thereby ensuring the smooth operation of assembly lines," the office said.
The government first applied this support measure for Russian automakers that had signed special investment contracts (SICs), which includes all major auto concerns, in 2020 amid a negative situation in the industry and the economy as a whole due to the coronavirus infection. Subsequently, a similar deferral was granted annually after the introduction of sanctions in 2022.
The scrappage fee is a targeted payment levied once on each vehicle manufactured in Russia or imported from abroad, and is intended to cover the costs of disposing of automotive equipment. The state compensates highly localized automakers for the payment of the scrappage fee. In 2024, the government approved a scale for the annual increase of the fee, in accordance with which, at the beginning of this year, rates rose as planned by 10%-20% depending on the type of equipment.
In addition, in December 2025, a new methodology for calculating the scrappage fee on passenger cars in Russia came into effect, which stipulates that the fee rate for importing a car into Russia will now be formed taking into account the base rate, as well as the type and engine displacement, the power of which influences the formation of a coefficient on a progressive scale (engine power was not taken into account before the end of 2025). Preferential scrappage fee rates for cars with engines up to 160 hp, which are imported into Russia by individuals for personal use and which, according to the Industry and Trade Ministry, account for 80% of demand, have been retained.
