MinFin backs moratorium on payments for leasing of foreign vehicles - source

MOSCOW. Nov 3 (Interfax) - The Russian Finance Ministry has backed the right of Russian companies not to make leasing payments in favor of subsidiaries of foreign automakers who have ceased to fulfill their warranty and service obligations under previously concluded contracts, a source familiar with the discussion of the relevant initiative told Interfax.

The moratorium on payments for leasing vehicles of foreign companies was proposed earlier by the Public Consumer Initiative (PCI). It said that Russian companies have problems servicing equipment made by Mercedes, Volvo, Scania, Man, Volkswagen and other brands because of the suspension of operations of foreign car companies in Russia, but they have to continue to make payments under leasing contracts. As Izvestia reported, Prime Minister Mikhail Mishustin instructed the Transport Ministry and the Industry and Trade Ministry to study this issue.

A source told Interfax that the Transport Ministry sent relevant requests to federal executive authorities as well as to specialized associations for leasing and automobile transportation in October as part of the execution of the order.

"The Finance Ministry, for its part, supported proposals on the possibility of introducing a moratorium on leasing payments to the Russian divisions of foreign companies," the source said.

The Ministry proposed that adjustments be made to the March Federal Law N46 "On Amendments to Certain Legislative Acts of Russia", expanding the powers of the government in terms of making decisions on the specifics of execution of vehicle leasing contracts.

"Thus, Russian lessees will be able to suspend lease payments to subsidiaries of foreign car companies until the end of 2022 with the prospect of extension to 2023 as well," the source said.