When buyers and sellers use Gosuslugi to complete a car sale, a new payment option became available: a letter of credit that releases funds only after the vehicle is officially registered in the buyer’s name. This mechanism was announced by the Ministry of Digital Development through its Telegram channel, clarifying that the credit arrangement is tied to the formal transfer of ownership and the subsequent registration with the traffic authority. The change makes the process more transparent and helps protect both parties by linking payment to verifiable steps in the transaction.
The letter of credit is provided free of charge, and the ministry stated that participants can sign a purchase agreement, complete payment, and manage the registration remotely through Gosuslugi. This setup reduces the need for in-person visits and speeds up the overall workflow, while still ensuring that the sale follows legal procedures and that ownership changes are properly documented at the traffic police office. The arrangement is designed to streamline cross-border or long-distance sales as well, since the digital platform can coordinate the key steps without requiring immediate physical presence at government offices.
To utilize the letter of credit, the seller must indicate the appropriate option in the Gosuslugi purchase and sale form. Once the transaction reaches completion, the buyer should initiate the vehicle registration in their name with the traffic police within five days. After verification, the bank that issued the letter of credit will transfer the funds to the seller. If registration encounters any issues or delays, the buyer has the option to extend the credit term or to terminate the deal, depending on the terms set in the agreement and the policies of the issuing bank. This system provides clear milestones for both sides and reduces the risk of a miscommunication that could leave one party exposed to loss or unnecessary delays.
Beyond the technical steps, the evolution of this payment method reflects how digital services are reshaping mid-market transactions in Russia. While many consumers still weigh their options when selecting a car, the new Gosuslugi credit option adds a layer of financial safety, particularly for private sales and smaller dealerships. Buyers gain confidence knowing the funds are held securely until ownership transfers are completed, while sellers receive assurance that payment will be released promptly upon proper registration. The approach aligns with a broader push to digitize public services and to integrate them with private-sector activities, making it easier to complete essential transactions without physical paperwork or repeated visits to government offices.