The head of AvtoVAZ, Maxim Sokolov, has stated that the recycling fee for budget cars in Russia could rise from 178 thousand to 300 thousand rubles. This was conveyed by TASS. The executive noted that the exact amount depends on the model family, but for the vehicles produced by AvtoVAZ the range would be from 178 thousand to 300 thousand rubles.
According to Sokolov, the higher subsidy would help maintain a price barrier on imports and protect the Togliatti plant’s products from stronger competition with foreign brands. This perspective was reported by the business daily Kommersant. The idea rests on ensuring that locally manufactured vehicles stay affordable relative to imported options amid ongoing market adjustments.
In Russia, a destruction fee is charged for every vehicle, self-propelled unit, or chassis either imported into the country or built on its soil. The policy was introduced in 2012 when Russia joined the World Trade Organization and is calculated from a base rate. Currently, that base stands at 20 thousand rubles. The final amount depends on several factors including whether the buyer is an individual or a legal entity, the age of the vehicle, and its engine capacity.
For private buyers, the fee is multiplied by 0.17 for new cars and by 0.26 for cars older than three years if they are imported. When the purchase is made by a legal entity or an individual entrepreneur, the fee for each car can reach hundreds of thousands of rubles, reflecting age, engine size, and other considerations. This framework shapes the overall cost of ownership and plays a role in the broader automotive market strategy in Russia.
In early May, Denis Manturov, Deputy Prime Minister and Minister of Industry and Trade, indicated that the Russian government was examining the possibility of increasing the car destruction fee. He said a decision would be considered in the near term. The potential change signals a continued effort to recalibrate the balance between domestic production costs and the price competitiveness of foreign vehicles in the Russian market. The discussion underscores how fiscal levers like this fee influence vehicle affordability and local manufacturing dynamics. (Source: official announcements and industry reporting, including TASS and Kommersant)