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Russian resolution on vehicle recycling tax to take effect from Sept. 1

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Aug. 31, 2012, 4:51 p.m. | Russia and former Soviet Union — by Interfax-Ukraine

Russian Prime Minister Dmitry Medvedev
© AFP

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Russian Prime Minister Dmitry Medvedev on Aug. 30, 2012 signed resolution No. 870 on a vehicle recycling tax, which could considerably reduce exports of vehicles from Ukraine to Russia.

The resolution posted on the Web site of the Russian government says that the tax takes effect from Sept. 1, 2012.

The document does not mention any special regime for supplies from Ukraine.

Ukrainian experts says that the introduction of the tax at the first stage could fully stop supplies of vehicles from Ukraine to Russia, of both trucks and buses and passenger cars, which today are shipped without additional fees under a free trade agreement. Additional payments for trucks are assessed at up to $27,000, for a large bus – up to $20,000-22,000 and for a passenger car – up to $500-1,000.

Kyiv offered Russia several options for settling the problem, but no agreement was reached.

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