GOVERNMENT PROTECTS CAR INDUSTRY

The Government Decree on protection of manufacture of cars in Russia, including local car assemblies of the international companies which have developed factories in Russia has been adopted.

Import duties on new cars, as well as second-hand ones in the age of up to 3 years will increase from 25 % to 30 % or from 1,2 to 2,8 euros for 1 cubic sm of volume of the engine, and on cars from 3 to 5 years old - from 25 % to 35 % or from 1,2 up to 2,8 euros. On cars older that 5 years the duty will rise from 2,5 to 5,8 euros for 1 cubic sm depending on volume of the engine. New duties will apply to both individuals and companies

The Government Decree # 903 'On Amendments to the Customs Tariff of the Russian Federation Concerning Certain Motor Vehicles' comes into force on 11 January, 2009.

December 12, 2008.