30 Mar 2019 14:10

Industry and Trade Ministry intends to remove list of compulsory technical operations for localization in car industry, remove localization schedule

KRASNOYARSK. March 30 (Interfax) - The Russian Industry and Trade Ministry suggests abolishing the principle of compulsory localization in Russia of certain technological operations for car industry enterprises and disconnect their localization from a specific schedule, Russian Deputy Industry and Trade Minister Alexander Morozov said at the Krasnoyarsk Economic Forum.

The Russian government's Decree N719, "under which we determine approaches and label products as 'Russian' is being discussed today" and these rules "will be seriously changed," he said.

"Decree N719 will seriously change in the near future in accordance with the opinions of market players and market regulators. Firstly, we will not have compulsory technological operations linked to specific periods. We believe that we absolutely should enable investors to implement their investment programs depending on their programs, corporate development programs, the level of development of local component suppliers, which will generally make it possible to make the process of investment in Russia more flexible," the deputy minister said at the session Strategic Foresight of Car Industry Development. Manufacturers' Vision and State Policies.

"It was an important decision: we decided to remove the need to conduct specific operations in specific periods for the purpose of maximizing an approach based on corporate principles," Morozov said.

An important new characteristic will also be the score system of evaluation of technical operations depending on the added value, he said. It will make it possible to assess the amount of scores given to determine the amount of state support, he said. "We will give scores for actually manufactured car models and for obligations assumed on this model, or on this product, which was registered in a special investment contract. We understand very well that companies' obligations to the state are an unconditional task, which will be achieved in accordance with a linear schedule," the deputy minister said.