The Ministry of Industry and Trade has taken 3 billion rubles from the budget of the Autocomponents program of the Russian Fund for Industrial Development (IDF). Now a little more than 3 billion is left for the development of domestic production of auto parts. The money taken away is expected to be used for the needs of industry in the Zaporozhye and Kherson regions, as well as the DPR and LPR. In Zaporozhye there are companies that traditionally supplied ZAZ with components. They are also likely to receive some of the money from the Ministry of Industry and Commerce. Previously, AVTOVAZ, KamAZ, UraAZ and a number of other companies used subsidies from the Ministry of Industry and Trade to develop projects for the production of household components for the automotive industry. Now they will have to moderate their plans to locate the production of auto parts.

According to 2022 estimates from the Ministry of Industry and Trade, the amount of funding required to localize the production of parts needed by Russian car factories is about 100 billion rubles.

Funds for the Autocomponents FRP program come from the recycling fee for cars entering the Russian market. The country’s car market has shrunk rapidly from 1.6 million units sold in 2021 to just over 600,000 passenger cars sold in 2022. Revenue from waste collection has therefore “shrunk”.

The Autocomponents program involves the issuance of loans at 1% per annum, which can be used to organize or expand the mass production of parts for cars and special equipment, Kommersant reports.

The Ministry of Industry and Trade has taken 3 billion rubles from the budget of the Autocomponents program of the Russian Fund for Industrial Development (IDF). Now a little more than 3 billion is left for the development of domestic production of auto parts. The money taken away is expected to be used for the needs of industry in the Zaporozhye and Kherson regions, as well as the DPR and LPR. In Zaporozhye there are companies that traditionally supplied ZAZ with components. They are also likely to receive some of the money from the Ministry of Industry and Commerce. Previously, AVTOVAZ, KamAZ, UraAZ and a number of other companies used subsidies from the Ministry of Industry and Trade to develop projects for the production of household components for the automotive industry. Now they will have to moderate their plans to locate the production of auto parts.

According to 2022 estimates from the Ministry of Industry and Trade, the amount of funding required to localize the production of parts needed by Russian car factories is about 100 billion rubles.

Funds for the Autocomponents FRP program come from the recycling fee for cars entering the Russian market. The country’s car market has shrunk rapidly from 1.6 million units sold in 2021 to just over 600,000 passenger cars sold in 2022. Revenue from waste collection has therefore “shrunk”.

The Autocomponents program involves the issuance of loans at 1% per annum, which can be used to organize or expand the mass production of parts for cars and special equipment, Kommersant reports.