G/TRIMS/Q/RUS/1  
 
1 December 2015  
(15-6330)  Page: 1/3  
Committee on Trade-Related Investment Measures  Original: English  
 
 RUSSIAN FEDERATION – SUPPORT MEASURES FOR THE AUTOMOTIVE SECTOR 
REPLIES TO QUESTIONS1 POSED BY EUROPEAN UNION  
The following communication, dated 30 November 2015, is being circulated at the request of the 
Delegation of the Russian Federation.  
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 In EU's understanding, the Russian governme nt has recently provided for additional 
support to the automotive industry, including as  part of an "anti-crisis plan". We refer 
for example to point 43 of Decree N°98 of 27 January 2015 and to Russia's Prime Minister statements available at http://government.ru/news/17331 . It is our 
understanding that the Russian government  issued Decree No 244 of 18 March 2015, 
providing for subsidies to "compensate the c osts related to the production of wheeled 
vehicles" and also re-activated the "cash for clunkers" program, that we understand to 
be based on Decree 1194 of 31 December 2009. In our understanding, this support 
comes on top of the subsidies based on resolutions No 29, 30, 31 and 32 of 15 January 
2014, that have already been addressed to some extent in the TRIMS Committee. 
Moreover, there have been recent reports that  the Ministry of Industry and Trade will 
launch a program of preferential car loans, fo r the purchasing of domestically produced 
cars.   
Question 1 
 Could the Russian Federation confirm/correct  this understanding? In particular, could 
the Russian Federation provide a list of support measures for the automotive industry 
(that apply in addition resolutions No 29 , 30, 31 and 32 of 15 January 2014), and 
indicate the relevant legal acts? Could the Russian Federation explain the relationship 
between those different measures? 
 
Question 2  
Could the Russian Federation explain the e ligibility conditions under those support 
measures, and indicate the re levant legal provisions?  
 Question 3 
 
In EU's understanding, the various support me asures are conditional on the production 
in "industrial assembly mode", pursuant to an "industrial assembly agreement" (see for 
instance point 4(c) of Decr ee 244 of 18 March 2015 and the "Criteria for selection of 
models and manufacturers in Russia" under Decree 1194 of 31 December 2009). Could the Russian Federation confirm/correct this understanding?  
 
                                               
1 G/TRIMS/W/152. G/TRIMS/Q/RUS/1 
 
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  Reply 
 
The EU's understanding is not correct.  
The Resolution of the Government of the Russian  Federation of 18 March 2015 No. 244 provides 
for support to Russian car manufacturers by partial compensation of the costs related to the production of wheeled vehicles. This measure is not related to the so-called "cash-for-clunkers" 
support program under the Resolution of the Government of the Russian Federation of 31 
December 2009 No. 1194. In fact the latter was terminated several years ago and since then there have been no funds allocated under the Resolutions No. 1194. 
 
In accordance with the Resolution of the Government of the Russian Federation of 18 March 2015 
No. 244 the eligibility criteria for recipients are as follows:  
- no tax debts; 
- the recipient is assigned with a World Manufacturer Identifier (WMI) code and marks Vehicle Identification Numbers on car chassis; 
- production under industrial assembly mode in accordance with valid investment 
agreement; - investment plan. 
 
Question 4  
Could the Russian Federation explain th e meaning of "industrial assembly" and 
"industrial assembly agreement", as referr ed to in various support measures, and 
indicate the relevant legal provisions?  
 
Reply 
 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. Under the Joint Order of the Ministry 
of Economic Development, Ministry of Indust ry and Ministry of Finance No. 73/81/58n of 
15 April 2005 the "industrial assembly" of motor 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. This term was referred to in the Resolution of the Government of 18 March 2015 
No. 244 for the purposes of scoping the support  to the Russian big car manufacturers. The 
Resolution No. 244 merely indicates that the producti on itself should be "in the industrial assembly 
mode". Therefore the provisions of the Resolution  No. 244 neither by themselves nor by reference 
to the production "in the industrial assembly  mode" impose local content requirements in 
exchange for receipt of the support. 
 Question 5 
 
Could the Russian Federation ex plain in particular the conditions for the conclusion of 
"industrial assembly agreements", and the general contents of such agreements, and 
indicate the relevant legal basis?  
 
Reply 
 
Please refer to the Working Party Report on the Accession of the Russian Federation to the WTO. 
 Question 6 
 
Could the Russian Federation explain the rationale for the requirement for the manufacturer to have an "industrial assemb ly agreement", in or der to benefit from 
various support measures?  
 G/TRIMS/Q/RUS/1 
 
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  Reply 
 
It is unclear from the question what is meant under "various support measures" which are assumed to require the manufacturer to have an "industrial assembly agreement". As for the 
Resolution of the Government of the Russian Fe deration No. 244 of 18 March 2015, the industrial 
assembly agreement was required because under this Resolution a manufacturer received partial compensation of costs for the procured car components (both of domestic and foreign origin), and 
the investment agreement ensured that the car components were used only for manufacturing and 
therefore could not be subject for re-sale.    
Question 7 
 Does the Russian Federation plan or is carrying out preparations for further measures 
relative to the domestic automotive indust ry, including other localisation programmes, 
of the like of Decrees No. 166 (of April 2005) and No 566 (of September 2006)?  
Reply 
 
There are no plans to introduce localization programmes of the like of Resolutions of the 
Government of the Russian Federation of  29 March 2005 No. 166 and of 16 September 2006 
No. 566. 
 
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