The Ministry of Industry and Trade has developed a program to support the component manufacturing industry

Moscow, June 7. – The Ministry of Industry and Trade has developed a mechanism that will support the automotive components industry. The corresponding draft resolution is published on the Federal portal of draft regulatory legal acts regulation.gov.ru.

The mechanism involves the provision of the preferential loan in the amount of 50 million rubles at a rate of 1% per annum for a period of up to 60 months.

"The funds can be spent on investment projects for localization and import substitution of components and assemblies for cars and specialized equipment. The loan is provided by the Industrial Development Fund and can cover up to 40% of the project budget. The loans can be used to finance part of the capital expenditures of investors for equipment acquisition and licenses as part of the localization of critically important for vehicles and specialized equipment in accordance with the Government Decree No. 719", said Denis Manturov.

In case of successful project implementation, the investor can receive a subsidy from the Ministry of Industry and Trade of the Russian Federation in the amount of the attracted loan for its repayment. The project success is confirmed by the purchased equipment commissioning and the shipment of localized products to at least two non-affiliated customers.

"The components grant program will ensure the industry's resilience to external economic factors, promote the development of technologies for the production of components for cars and specialized equipment and increase the investment attractiveness level of the industry. Federal support will provide finance to launch the project and make it more economically feasible for companies to move production sites to Russia, rather than import automotive components directly", said Denis Manturov.

Original is on the website: Minpromtorg RF