Die Welt: “decree 166” Putin makes the Russian automotive market

Die Welt: “decree 166” Putin makes the Russian automotive market

The instrument of the preferential import duties for foreign carmakers in Russia should enter into force only next year, but it now does not allow the market to collapse and encourages foreign automakers to invest in business in Russia, writes Die Welt.

MOSCOW, 12 Nov. Despite volatile market conditions and the difficulties experienced by the Russian economy, to market “suddenly there was a new hope”, writes the German newspaper Die Welt.

“Decree 166” (a document that defines a new mechanism to support foreign automakers, who have localized production in Russia – approx. ed.) is the force that stimulates the Western European avtopromyshlennikov to invest in Russia. The document States that any foreign car manufacturer may receive preferential import duty under the condition that will produce in Russia not less than 300 thousand cars a year. The document comes into force next year, however, automakers began “hastily to increase” investments in their production facilities in Russia even before the Ukrainian crisis, the article says.

“For Putin, the decree represents one of its biggest successes in the field of economic policy. Ten years ago only a small part of sold in Russia of cars actually produced inside the country. Today they clearly are the majority”, — writes the edition.

As noted by Die Welt, this is due to the fact that manufacturers and suppliers of parts and components benefit from a weak ruble creates favorable conditions for export. Despite the fact that many car manufacturers due to the fall in demand partly cut production, there is positive news. Earlier the Japanese supplier of the German automaker Volkswagen announced the expansion of production in Central Russia. The automaker in early September opened a new plant for the production of engines in Kaluga, the newspaper writes.

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