
Moscow (Reuters), the Ministry of Industry and Trade of the Russian Federation, considers it possible to extend the AvtoKhlama program by adding another 100,000 cars from the “recycling” discount from the budget, said Andrei Dementyev , Reuters of the Deputy Minister of Industry and Trade. The Government of the Russian Federation at the beginning of 2010 allocated 25 billion rubles for a demand support program for a car market in a crisis, which provides for discounts for owners of the old cars for the purchase of 500,000 new cars, but the money will end in mid -2011. With the help of the Autochlama program, the market in 2010 increased by 30 percent to 1.9 million cars. “Theoretically, if it were possible for us to add funds to this program, then we could continue it a little in that form, but this has no fundamental importance,” Dementiev told reporters on Wednesday. “We understand exactly that about 100,000 certificates would be in demand by the market, this is our assessment,” Dementiev said. Such a number of certificates will cost the budget in an additional 5 billion rubles, and the total volume of the demand for demand support due to AutoClam can increase to 30 billion rubles. For Udmurtia, the need to extend the disposal program could be experienced primarily by the Izhavto plant and the economy of the region in which the plant is located - the Republic of Udmurtia, said Dementyev Reuters. The topic of the extension of the AvtoKhlama program was discussed at a meeting with the Prime Minister of the Russian Federation Vladimir Putin on Monday, the Reuter was recalled by the head of the Secretariat of the President of Udmurtia Denis Loginov. “If she (the program) will last a little, of course, support will be,” Volkov said to Putin, and the prime minister promised him to think about this issue. The government of Udmurtia planned to send Putin a letter whose project is at the disposal of Reuters. The letter contains a request to give the government an order to extend the duration of the program. The main beneficiary of the AvtoKhlama program is the manufacturer of the cheapest cars in Russia AvtoVAZ, which is now making a deal to buy Izhavto and has already organized the production of its “classics” in Izhevsk. Volkov promised Putin on Monday by July 2011 to produce 1,000 cars per month at Izhavto and double the number of jobs at the plant up to 5,100 people. The Izhavto plant with a capacity of 220,000 cars per year will now bankrupt, but AvtoVAZ plans to redeem its assets with the help of budget funds and loans of Sberbank. AvtoVAZ promised to bring the volume of production at the plant up to 300,000 cars a year for three to four years, having invested 7 billion rubles in it, and to produce LADA on it, as well as the cars of his Renault and Nissan alliance partners. (Gleb Stolyarov. Editor Anton Zverev)