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Stimulus plans - Russia finishes first phase of car recycling
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Friday, 25 Jun 2010
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It is reported that ministry of industry and trade of Russian Fedration has completed the first phase of its car recycling program and is ready to start the second one, reported director of automotive and agricultural machine manufacturing department of the ministry Mr Alexey Rakhmanov.

The 200,000 certificates that were put into the program are fully distributed. And the 10 B rubles promised by the government will be started to be used tomorrow or a day after tomorrow already.

Car recycling program started in Russia on March 8th 2010. To take part in the program may an owner of the car produced not later than 1999. An owner who brought the car for recycling obtained a compensation certificate for RUB 50,000 valid for purchase of the new car manufactured in Russia. It was granted RUB 10.5 billion for the program which allowed issuing discounts for 200,000 cars.

As Mr Alexey Rakhmanov noticed all certificates from 200,000 declared are distributed. By this certificate 81200 cars were sold. From total amount of the distributed certificates 161350 are for AutoVAZ products, 10722 are for Renault products. The sales are behind the amount of certificates, but Mr Alexey Rakhmanov promises they will grow.

However, in one two days distribution of certificates restarts. We’d like to remind that Prime minister Mr Vladimir Putin earlier this month informed that the government is going to grant for the program of car recycling RUB 10 billion more. Mr Alexey Rakhmanov said “Enquiries collecting for the next 200,000 cars will start tomorrow or a day after tomorrow."

The authorities decided not to put changes into the program. Mr Alexey Rakhmanov said “The program will work in the same format as today". In accordance with his words, now the documents are being approved throughout a number of authorities. In particular, there is an approval from the Ministry of economic development. Along with this, as the representative of Minpromtorg remarked if the second phase of the program goes the same rate as the first one, it is going to finish till the end of 2010.

The dealers who participate in the program however have to state that compensation of their costs from the budget is going hard. By the data for mid-June this year, they were compensated from the budget only RUB 900 million instead of RUB 3.5 billion owed. However, the problems sometimes occur by the seller fault that are not always complete the documents properly.

(Sourced from RBC Daily)

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