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Russia Delays Power-Based Auto Utilization Fee to December, Retains Break for Cars Under 160 HP

The ministry pushed the start to 1 December to accommodate a revised calculation that ties charges to engine power.

Overview

  • The Industry and Trade Ministry said the new utilization-fee methodology will take effect on 1 December 2025 instead of 1 November.
  • First Deputy Prime Minister Denis Manturov confirmed the preferential coefficient remains for passenger cars up to 160 horsepower, covering more than 80% of the fleet.
  • The reform adds engine power as a progressive coefficient to the fee, with individuals importing cars under 160 hp paying 3,400 rubles for new vehicles and 5,200 rubles for cars older than three years.
  • Private imports at 160 hp and above will be charged at commercial rates, which dealers expect to lift prices on parallel-imported models and reduce such supply; one estimate projects a roughly 15% drop after implementation.
  • The schedule change follows industry appeals for a transition period as the draft drew public pushback, including protests in Russia's Far East and Siberia and calls for exemptions for certain groups.