27 May 2022 09:26

Russian govt allocates 30 bln rubles to support auto components industry

MOSCOW. May 27 (Interfax) - The Russian government has allocated 30 billion rubles to support the automobile components industry, Deputy Prime Minister Yury Borisov said on TV channel Rossiya24.

The Industry and Trade Ministry included this measure in the second package of the plan to support the economy in the face of sanctions, a source familiar with the ministry's proposals told Interfax at the end of March. Business daily Vedomosti, citing sources, said the money would be distributed to manufacturers through Industrial Development Fund (IDF) grants.

"We are making active efforts in the dynamic of reproduction of the necessary auto components. Specifically, 30 billion rubles have now been provided so as to dynamically reproduce the necessary components," Borisov said.

He also said that permission to produce automobiles in Russia with emission standards as low as Euro 0 is a temporary measure.

"The easing of environmental standards [to] Euro 0 is a temporary decision so as to ensure the utilization of plant capacity. Indeed, this is a little step back, where it is possible to forego certain types of units due to the shortage of auto components and switch to simplified models," Borisov said.

Commenting on the impact of sanctions on Russia's auto industry, he said that for "automakers there is a different degree of woe for trucks, for buses, for cars and for commercial vehicles."

Car production in Russia tumbled 72.1% to 40,900 vehicles and truck production fell 19.8% to 14,100 in March amid widespread shutdowns of auto plants. In the first quarter of 2022, car production fell 33.2% to 244,000, while truck production rose 5.3% to 40,300.