AvtoVAZ is preparing to remit 60 billion rubles to the state budget as part of the recycling fee for 2023. The company’s president, Maxim Sokolov, confirmed this figure to reporters, noting the payment will be made from an advance and fully allocated to the budget. The disclosure came on the sidelines of a meeting with the Federation Council, where Sokolov emphasized that every ruble would be paid in full to the government.
Looking ahead to 2024, Sokolov explained that the level of production will directly shape the size of the scrap collection duty. He indicated that the next year’s payment could climb to as much as 80 billion rubles if production stays high. This projection underscores how policy changes tied to waste management and recycling fees can fluctuate with manufacturing output.
Historically, automakers paid their scrap taxes quarterly. This year, however, the payment schedule shifted, with obligations concentrated in December. AvtoVAZ is expected to cover recycling fees for the fourth quarter of 2022 and the first and third quarters of 2023. These adjustments reflect adjustments in fiscal administration and the evolving approach to financing automotive sector initiatives in Russia.
Since August, the recycling fee has been indexed. For passenger cars, the rate rose by a factor ranging roughly from 1.7 to 3.7, depending on engine size. In parallel, Russian automakers operating under a special investment agreement with high product localization benefit from industrial subsidies. In the sector, such subsidies are often viewed as compensation for waste collection. Despite the fee increases, the overall allocation of budget funds to support the automotive industry in 2024 remained largely unchanged, with the exception of a near doubling of the preferential car loan program’s budget, as reported by Kommersant in its analysis of the fiscal picture.
Industry observers pointed to the rationale behind the rise in recycling collections, noting the push to improve environmental stewardship and align with broader waste management goals. Behind the scenes, discussions focus on how these costs affect the operating environment for large manufacturers and the level of state support available to the sector in subsequent years. The dynamics of recycling policy, local production, and budgetary planning continue to shape the economic landscape for automotive players in Russia and beyond. [Kommersant]
Experts add that drivers and industry insiders alike are watching the interplay between production drives, regulatory reforms, and funding programs such as subsidized credit schemes, which collectively influence the affordability of vehicles for consumers while sustaining industrial investment. The evolving policy framework aims to balance environmental responsibility with the need to maintain a competitive automotive industry within a changing fiscal environment. [Kommersant]