Russia Raises Car Recycling Fee and Expands Local Production

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The upcoming adjustment to Russia’s car recycling fee will raise the multiplier from 1.7 to 4.8, effective 1 August. This change was discussed by Denis Manturov, who leads the Ministry of Industry and Trade, during a briefing that highlighted how import activity in the automotive sector has grown significantly in recent periods.

According to Manturov, the scrapping index for vehicles is set to land within a broader range, with passenger cars anticipated to see a 1.7 to 3.7 fold increase and light commercial vehicles a 2.5 to 3.4 fold rise. The plan is framed as a response to heightened import levels and the need to align recycling fees with current market realities and environmental goals.

The revised rate structure will impact legal entities that import new and used cars into the Russian Federation, as well as individuals who participate in the resale of vehicles. The policy is designed to reflect shifts in the supply chain and the financial considerations involved in bringing vehicles into the country, with the aim of ensuring that recycling obligations remain proportionate to vehicle value and use.

Manturov clarified that the change will not apply to private individuals who import cars with engines up to three liters for personal use. For that segment, a preferential tariff remains in place, providing a reduced fee of 3.4 thousand rubles, while vehicles up to three years old will be assessed 5.2 thousand rubles under the special scheme. This carve-out is meant to preserve affordability for personal ownership while maintaining a framework that supports broader recycling and domestic industry objectives.

Earlier in the year, in a separate development, Valentina Matvienko, the chairperson of the Federation Council, indicated government support for a bill that would set localization requirements for two areas: vehicle production and the car-sharing sector that serves senators as passenger taxis. This proposal signals a broader push to strengthen domestic manufacturing capabilities and expand the use of locally produced components within new vehicle fleets, including those used for official transport needs.

On the manufacturing front, Russia has announced the launch of a domestic automotive ABS production initiative, reinforcing the push toward self-sufficiency in key automotive subsystems. This step is part of a wider strategy to reduce reliance on foreign suppliers for critical safety features and to foster a more resilient national automotive supply chain. The combination of local production improvements and refined recycling economics forms a cohesive policy approach aimed at supporting industry growth, environmental responsibility, and consumer access to vehicles under evolving market conditions.

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