Russia tries to encourage auto manufacturing

RUSSIA / FSU POLITICS - In Brief 26 Nov 2018 by Alex Teddy
Deputy Prime Minister Dmitry Kozak said last week that he wishes to see equal access to state subventions for all motor manufacturing. Kozak proposed phasing out industrial assembly agreements and replacing them with special investment contracts (SPIKs). Kozak said he wished to see draft legislation by 30 December this year. At the moment the state subsidises those who assemble cars in Russia. Usually at least some of the parts are made abroad but assembly takes place in Russia.Hyundai and BMW are considering opening new factories in Russia. They will be offered SPIKs if they do so as well Avtotor and GAZ (both Russian car manufacturers). Russia has a huge potential for industry. Cheap labor, ample space, an educated workforce, cheap energy and low taxes make it attractive place to manufacture.

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