A group of Russian carmakers has floated a plan to delay the recycling fees on vehicles built in 2024, proposing to push the payments to the end of the year. This idea was shared in reporting by Vedomosti.
AvtoVAZ chief Maxim Sokolov argued that such a postponement would relieve pressure on working capital amid high borrowing costs. He noted that in 2024 the company faces roughly 20 billion rubles in loan interest alone, funds that would otherwise need to be diverted from investments and other production programs. The proposal also received support from KamAZ and GAZ.
Earlier this year, recycling charges were paid quarterly, but the schedule shifted and payments were deferred to December. AvtoVAZ, for example, now owes recycling fees for the fourth quarter of 2022 and for the first and third quarters of 2023.
The recycling fee in the Russian Federation has been indexed since August 1, with passenger cars seeing rates rise on average by between 1.7 and 3.7 times, depending on engine size. Manufacturers that hold a special investment agreement (SPIC) and have a high degree of local product localization can qualify for industrial subsidies; in the sector these subsidies are often viewed as compensation for waste management costs.
Industry observers have offered explanations for the recent spike in recycling collections as drivers seek to understand the policy shifts and their implications for affordability and production planning. — Vedomosti