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Russia trying to subsidise cost of parts imports

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Russia’s Ministry of Trade wants overseas manufacturing companies to continue to comply with the industrial assembly agreements drawn up under Regulation 166. This regulation, which was amended in 2010, allowed overseas car manufacturers to import parts at preferential rates of customs duty. However, the manufacturers no longer have a reason to comply with the agreements since the Russian government has cancelled tax breaks on parts imports.

Subsidies could be introduced “to recover the conditions of the industrial assembly agreements” and to “ensure that obligations undertaken [by carmakers] within these agreements are fulfilled”.