Experimental procedure for encouraging replacement of scrapped cars with new ones

09.02.2010

Legal Update No. 123

As a continuation of its Legal Update No. 116 of 28 January 2010, Goltsblat BLP advises that resolution of the Government of the Russian Federation of 31 December 2009 No. 1194 “On an Experiment to Encourage Purchase of New Vehicles to Replace Obsolete, Scrapped Vehicles...“, which came into effect on 1 January 2010, has been supplemented by orders of the Ministry for Industry and Trade of the Russian Federation dated 14 January 2010:

  • No. 8, approving the Procedure for running the given experiment (the Procedure);
  • No. 9, approving the List of Russian new car models and manufacturers for sale within the scope of the experiment (the List).

The Procedure determines the way the experiment is to be held and the main functions of and interrelations between the participants in the experiment and establishes the requirements on scrap-yards and the conditions for their participation in the experiment.

The Procedure lists the participants in the experiment as:

  • the Ministry for Industry and Trade of the Russian Federation;
  • trading organisations;
  • scrap-yards;
  • individual owners of obsolete vehicles. 

Obsolete vehicles given in for scrap must be complete, meaning that they must have in place all their component parts :

  • providing for movement: body/frame, engine, gearbox, transmission, steering block, wheels, battery, fascia, the usual electrical equipment and seats;
  • environmentally hazardous materials and components (if applicable): operating liquids, filters, fuel tanks, gas and liquid containers, air-bags with propellant charges, exhaust system, including convertors.

The List contains the names of the 66 Russian-made car models (and their modifications), produced by 17 manufacturers, subject to sale within the scope of the experiment. Among these models are the Lada, UAZ, GAZ, IZH, and TagAZ, as well as the Chevrolet NIVA, traditionally considered to be Russian, as well as the Volkswagen, Skoda or Nissan vehicles manufactured on the basis of an assembly agreement with the Ministry for Industry and Trade of Russia.

For additional information, please contact:

Nikolay Voznesenskiy,
Senior Associate,
Corporate/M&A/Competition & Antitrust,
Goltsblat BLP;
E: info@gblplaw.com

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