G/SCM/Q2/RUS/16  
 
24 October 2016 
(16-5791) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
QUESTIONS POSED BY THE EUROPEAN UNION  TO THE RUSSIAN FEDERATION  
REGARDING THE SUPPORT  MEASURES TO THE AUTO MOTIVE SECTOR  
The following communication, dated 21 October 2016, is being ci rculated at the request of the 
Delegation of the European Union . 
 
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Subsidies to the car sector under the "Industrial assembly mode"  
Decrees No.  29-32 of 15 January 2014  
In its replies to Japan's questions (G/SCM/Q2/RUS/9), the Russian Federation states that the 
provisions of the Decrees No. 29-32 of 1 5 January 2014 "do not contain any "local content" 
requirements". Moreover, the Russian Federation declare themselves1 that the  term "industrial 
assembly" was referred to in the Resolutions No. 29 -32 for the purposes of scoping the support to 
the Russian b ig car manufacturers . 
1. Could the Russian Federation present in details the eligibility criteria to receive the 
subsidies? Could the Russian Federation clarify why the measure is only targeted to the 
Russian big car manufacturers?  
2. Could the Russian Federatio n explain how this scheme can be considered compatible under 
WTO rules and, in particular, with the provisions of the ASCM?  
3. Could the Russian Federation inform Members whether, at present, the list of beneficiaries 
has been published?  
Resolution of Govern ment of the Russian Federation of 18 March 2015 N o. 244 
4. Could the Russian Federation list, in detail, all the eligible criteria for benefitting of the 
subsidies under the Resolution of Government of the Russian Federation of 18 March 2015 
No. 244?  
5. Accordi ng to the available information, the EU is aware that, among other criteria, the 
beneficiary shall be assigned with a World Manufacturer Identifier (WMI) code and marks 
Vehicle Identification Numbers on car chassis. Could the Russian Federation confirm thi s?  
Should it be the case, could also the Russian Federation explain whether recipients of all 
WMI codes can benefit or if only certain WMI recipients (e.g. from certain geographical areas 
or certain countries or regions) can be eligible?   
6. According to th e available information, the EU is aware that, among other critera, the 
production shall take place under industrial assembly mode in accordance with valid 
investment agreement. Could the Russian Federation explain what such a "valid investment 
agreement" is and on what legal basis such agreements can be concluded?  
                                                
1 G/TRIM S/Q/RUS/2 . G/SCM/Q2/RUS/16  
 
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  7. What are the assembly agreements mentioned in point 4c of Decree 244/2015? Could the 
Russian Federation present a list of the agreements signed and which are valid in 2014 
and 2015? Could the Rus sian Federation indicate how many such "valid investment 
agreements" are currently in force?  
The Russian Federation states2 that the term "industrial assembly" of motor vehicles was defined 
as a system of batch production on the basis of technological proc esses, achieving a production 
capacity of no less than 25,000 units per year in double -shift operation.  
8. What is the rationale of referring to an "industrial assembly mode" in the measures listed 
below and its further connection with "industrial assembly ag reements"  (Decree 1433 of 
19/12/2014 amended by Decree 244 of 18/03/2015) as a criterion for receiving subsidies?  
a. the subsidy scheme introduced on 15 January 2014 (Resolutions 29, 30, 31 
and 32);  
b. the cost -compensating subsidy scheme introduced end 2015 (D ecree 1433 of 
19 December 2014, amended by Decree 244 of 18 March 2015 and subsequently 
by Decree 351 of 25 April 2016);  
c. the subsidised car loan and car leasing introduced in April 2015 (Decree  344 
of 23 April 2016  amending  Decree 364 of 16 April 2015).  
Preferential automobile leasing and loans  
1. The EU understands that the legal basis for granting preferential automobile leasing and 
preferential loans is the Resolution of 451 of 8 May 2015 and the Decree  No. 344 of 23 April 
2016, amending Decree 364 of 16  April 2015. Could the Russian Federation confirm and/or 
indicate what the relevant legal acts are?  
2. What are the eligible criteria for receiving preferential automobile leasing and loans as 
provided by Resolution of 451 of 8 May 2015 and/or any other lega l basis currently in force? 
In particular, could the Russian Federation clarify whether the automobile production plants 
shall be located in Russia?  
3. Could the Russian Federation present the list of the beneficiaries under this scheme?  
 
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2 P.1075, WT/ACC/RUS/70 .