The government is going to allocate 4.8 billion rubles in subsidies for car industry in the III quarter

OREANDA-NEWS. The Russian government plans to allocate 4.824 billion rubles in subsidies for automakers in the III quarter of 2015 to compensate part of the costs in connection with the production of vehicles. A draft decision is posted on the portal for the publication of information about developing regulations and their public discussion regulation.gov.ru; the developer of the document – is the Ministry of Industry and Trade of Russia. Earlier it was reported that in the I quarter the government has allocated 10 billion rubles in subsidies, in II quarter it was decided to allocate additional 5 billion rubles, wrote the newspaper "Vedomosti".

In addition, the draft decree provides an increase in funding of the program of preferential car leasing (from 2.5 billion rubles to 3.5 billion rubles). The document also presumes the subsidies decline for car industry to pay the interest on loans, obtained from Russian banks, VEB and international financial institutions for working capital and (or) to finance the current operations from 20 billion rubles to 10 billion rubles.

Ministry of Industry and Trade has previously noted that the relevance of these measures was due to the fact that in 2014 the cost of cars, produced in Russia, increased significantly. Among the reasons there were allocated the following financial and economic factors: an increase in costs for the purchase by Russian automakers of imported components for assembly of cars due to fluctuations of foreign currency; high inflation in Russia (according to Rosstat, in 2014 it was 11.4%); price increases at Russian suppliers, which sell the import automotive components; the rise in prices on the world market for steel and ferrous metals.

"As a result of these adverse factors, the profitability of production of cars in Russia fell by 10-15%; the most automakers are working now with a minimum level of profitability," - noted in the Ministry of Industry.

The funds are provided in amount of 90% of the production costs, but no more than the set maximum for subsidies.