Federation Council weighs localization rules and taxi price controls

No time to read?
Get a summary

The Federation Council proposed measures to regulate taxi vehicle prices should Russia move forward with localization requirements in regional markets. A summary of the discussions was published by the news portal Car News of the Day. The proposal was forwarded to the Ministry of Industry and Trade and the Federal Antimonopoly Service (FAS) for consideration.

The concern raised is that if regions begin imposing localization standards for taxi cars, the Ministry of Industry and Trade and the FAS should step in to monitor car prices and curb any supplier price-squeezing. The approach favors direct sales from manufacturers to operators, with the anti-monopoly authority approving each transaction and ensuring that dealers and intermediaries do not extract extraneous fees.

The Federation Council suggested that regional authorities emulate Moscow’s experience by providing subsidies to taxi companies to help offset part of the purchase costs when localization requirements are in place. This would be a targeted policy response designed to soften the financial impact on taxi operators while promoting the use of domestically produced vehicles.

Earlier this year, Andrey Kutepov, head of the Federation Council Economic Policy Committee, spoke about setting localization thresholds for vehicles used as taxis. He argued that codifying these standards in law would likely boost demand for domestically manufactured cars within the taxi sector.

The Russian Union of Industrialists and Entrepreneurs (RSPP) expressed reservations about giving the government broad authority to determine localization levels for taxi vehicles. They warned that imposing strict localization could slow down vehicle purchases due to shortages and push up prices. Such measures might also disrupt market equilibrium, potentially driving some carriers toward informal markets or prompting some operators to exit the taxi business altogether.

There were prior reports that the State Duma is considering changes to dynamic taxi tariffs, a move that could interact with localization policies and influence overall market activity in the taxi sector. In the current climate, the balance between supporting domestic production and maintaining a competitive, accessible taxi market remains under careful review. The discussion continues as authorities weigh the best path to align vehicle localization with broader economic and consumer objectives, while preserving service stability for riders in major cities and regional areas. (citation: Car News of the Day)

No time to read?
Get a summary
Previous Article

Plastic Additives in the Marine Environment: Health and Ecological Impacts in a SINTEF Ocean Study

Next Article

Amancio Ortega Expands Spanish Real Estate Footprint Amid Global Investments