G/TRIMS/Q/RUS/2  
 
1 December 2015  
(15-6329)  Page: 1/3  
Committee on Trade-Related Investment Measures  Original: English  
 
RUSSIAN FEDERATION – SUPPORT MEASURES FOR THE AUTOMOTIVE SECTOR  
REPLIES TO QUESTIONS1 FROM JAPAN  
The following communication, dated, is being circulated at the request of the Delegation of the 
Russian Federation. 
 
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 Question 1 
 
At the TRIMs Committee's meeting on 6 Octobe r 2014, as a reply to the United States' 
questions submitted on 13 June 2014, the Russi an Federation stated that "industrial 
assembly mode" under Resolutions No. 29-32 means that "the producer has a valid 
agreement on industrial assembly". Japa n understood that "a valid agreement on 
industrial assembly" referred in the statem ent is the industrial assembly agreement 
with Ministry of Economic Development (M ED) under the Auto Investment Programs 
provided under Joint Orders No.73/81/58n of 15 April 2005 and No.678/1289/184n of 
24 December 2010. Is Japan's understanding correct?   
If they are not the same agreements, please provide the following information with 
regard to the industrial assembly agreements required for the subsidies under Resolutions No. 29-32: (i) relevant legal prov isions; (ii) conditions to conclude the 
agreements; and (iii) terms to be  provided for the agreements. 
 Question 2  
Are the industrial assembly agreements referred in the above-mentioned Russian 
Federation's statement limited to the agreem ents listed in Tables 42, 43 and 44 of the 
Working Party Report on the accession of the Russian Federation? If there are any 
additional signed agreements under the Auto Investment Programs that are not 
included in the Tables 42-44, please in dicate them and explain the reasons. 
 
Reply 
 
The understanding of Japan is not correct.  
The term "industrial assembly" does not have any general definition which could be applicable for 
interpretation of different legal acts where this term is used. For example, under the Joint Order of the Ministry of Economic Development, Ministry of  Industry and Ministry of Finance No. 73/81/58n 
of 15 April 2005 the "industrial assembly" of moto r vehicles was defined as a system of serial 
production with a capacity of no less than 25 000 units per year in two-shift work schedule including such technological processes as welding, painting and assembly of the car body; 
mounting of the passenger compartment equipment, mounting of major car components (engine, 
chassis) etc. The term "industrial assembly", following its definition, implies only that certain basic manufacturing operations should be performed, bu t it does not require the use of goods produced 
domestically. 
 
                                               
1 G/TRIMS/W/153. G/TRIMS/Q/RUS/2 
 
- 2 - 
 
  Under the Resolutions of the Government of the Russian Federation No. 29-32 of 15 January 2014 
it is not required from the applicant to present an investment agreement on "industrial assembly". However, presentation of such valid agreement was by itself enough to proof that the applicant's 
production was under "industrial assembly" mode. 
 
Question 3  
Are there any auto manufacturers who have signed agreements with the Ministry of 
Industry and Trade (MIT) to receive the subs idies under Resolutions No. 29-32, but have 
not signed industrial assembly agreements with the MED under the Auto Investment Programs? 
 
Reply 
 
As described in the reply to questions No. 1-2, according to the Resolutions of the Government of 
the Russian Federation No. 29-32 the applicant is not required to present "industrial assembly" 
agreements.  
 
Question 4  Does the Russian Federation publicly disc lose the names of auto manufacturers who 
have signed agreements with MIT to receive subsidies under Resolutions No. 29-32? If 
so, where can the information be found?   
Reply 
 
Up to the present date, the Russian Federation has not publicly disclosed the names of auto 
manufacturers who signed agreements with the Mi nistry of Industry and Trade of the Russian 
Federation to receive subsidies under Resolutions No. 29, 30, 31 and 32 of 15 January 2014.  Question 5 
 
Could the Russian Federation explain whethe r auto manufacturers need to submit the 
industrial assembly agreements under the Au to Investment Programs at any stage of 
the procedure to obtain the subsidies under  Resolutions No. 29-32 (for example, on 
application for signing the agreement with the Ministry of Industry and Trade)?  
 
Reply 
 
Please refer to reply to questions No. 1-2  
Question 6 
 Can auto manufacturers receive subsidies under Resolutions 29-32 without meeting the 
local content requirements set out in the Auto Investment Programs? If so, please 
indicate which auto manufacturers have rece ived subsidies under Resolutions No. 29-32 
without being subject to the local content requirements set out in Auto Investment 
Programs.  
 Reply 
 
Russian car manufacturers can receive subsidies under the Resolutions No. 29-32 without meeting 
any local content requirements because the Resolutions No. 29-32 do not impose any local content requirements. 
 
Question 7  
Could the Russian Federation explain the rati onale for requiring the production through 
"industrial assembly mode" as a condition to provide the subsidies under Resolutions 
No.29-32?  G/TRIMS/Q/RUS/2 
 
- 3 - 
 
  Reply 
 
The term "industrial assembly", following its definition, implies only that the manufacturer must perform certain basic manufacturing operations which are inherent for the process of car 
production, but it does not require any use of g oods produced domestically. This term was referred 
to in the Resolutions No. 29-32 for the purposes of scoping the support to the Russian big car 
manufacturers. The Resolutions merely indicate that the production itself should be "in the 
industrial assembly mode". Therefore the provisions of the Resolutions neither by themselves nor 
by reference to the production "in the industrial assembly mode" impose local content requirements in exchange for receipt of support.  
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