Support of the Industrial sector: Alexey Mikhailovich Serezhenkin

Alexey Mikhailovich Serezhenkin

Assistant Chief Executive Officer of the Association of Russian Automakers (OAR)

- At the present time the activities aimed at stabilizing the domestic industry are carried out. 18 Russian automotive market-oriented decrees were adopted by the Government of the Russian Federation. These documents concern the measures of government support of exporters, stimulation of enterprises involved in the retooling and modernization process, and also customs and tariff regulation. Some decisions are oriented to the automotive market development.

If we evaluate the support measures of the industry from the point of view of their effectiveness, the most effective of all the measures are increase in customs duties for imported vehicles and practice of government order for domestic cars.
Some measures have been carried out for only several months and it is not enough to evaluate their effectiveness. Particularly, it concerns subsidization of companies engaged in leasing of vehicles, support measures of exporters and subsidization of the transportations of vehicles to Far East. The implementation of many of such decrees is planned for only 2009. At the same time it is evident that we should continue their use in the short-term and probably in the medium-term prospect.

We should also take into consideration that some protocol decisions of Prime Minister of the Russian Federation are not carried out. The amendments to Chapter 28 of the second part of the Tax Code of Russian Federation were not made. They concern determination of ecological class rates against tax rates for vehicles and also for buses and trucks produced more than 10 years ago.

The amendments to be made in the tariffs of MTPL Insurance are still under consideration. We should also pay attention to the order of determination by the insurers of high rates for commercial vehicles older than 10 years when quoting the premium.

Besides, we should also make use of some projects of regulatory legal acts offered by automakers. Particularly, Car Allowance Rebate System seems to be very effective.