ST. PETERSBURG – The Russian government will provide RR300 billion ($500 million) in subsidies to domestic automakers and global manufacturers operating in the country for the remainder of the year.
The Russian Ministry of Industry and Trade says in a statement the bulk of the subsidies will be allocated to manufacturers with the most sales, with a significant amount provided to automakers with the most localization.
Local producers of engines and auto parts also will be eligible for state support.
Currently, the Renault-Nissan Alliance has the highest level of localization (up to 68%) mainly due to its partnership with Russian automakers AvtoVAZ and KamAZ . The Ford Sollers joint venture is in second place with (50%), while Hyundai is third (46%).