The Ministry of Industry and Trade intends to allocate subsidies to automakers of the Russian Federation

The Ministry of Industry and Trade proposes to allocate from the federal budget of a subsidy in the amount of 5 billion rubles to compensate the Russian manufacturers of part of their costs in the second quarter of 2015, TASS reports with reference to the draft Decree of the Government of the Russian Federation, posted on the Unified Portal of Disclosure of Legal Information.

Subsidies are distinguished within the framework of the subprogram "Automobile Industry" of the State Program Development of Industry and increasing its competitiveness. "

The department in the explanatory note notes that the subsidies are distinguished in order to reduce the negative consequences of the economic situation that has developed for the manufacturers of the Russian Federation in 2014. "The relevance of taking measures is caused by the fact that in 2014 the cost of cars produced in the Russian Federation increased significantly," the explanatory note to the document says. Among the reasons for the growth of costs, the Ministry notes the increase in the cost of foreign components against the background of the fall of the ruble and the high level of inflation. "Due to these adverse factors, the profitability of car production in the Russian Federation was reduced by 10-15 percent," the department notes.

Earlier, Russian Prime Minister Dmitry Medvedev signed a similar decision on the allocation of 10 billion rubles to compensate for part of the costs in connection with the production of wheeled vehicles.

"According to the forecast data of automakers, this amount of financing will provide additional loading of production capacities in the 2nd quarter of 2015 in the amount of about 50 thousand cars," the explanatory note to the draft resolution also said.

Sales of cars and light commercial vehicles (LCV) in the Russian Federation in 2014 fell by 10.3 percent compared to 2013 and amounted to 2.49 million units, the European Business Association (AEB) previously reported.

In 2015, the sales continued to decline. In this regard, car manufacturers are taking measures to reduce production volumes, introduce a downtime, incomplete working week, and reduce.

The American concern General Motors defined the Russian market as non-rich and decided to remove from the market of the Russian Federation all budget models of the brands belonging to it, as well as freeze its site in St. Petersburg.