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Russia Finalizes Car Recycling Fee Overhaul, Sets December 1 Start

Officials frame the engine‑power formula as a curb on grey imports with a low rate kept for private buyers up to 160 hp.

Overview

  • The government approved the new methodology for calculating the vehicle recycling fee, confirming the effective date of December 1.
  • The fee for passenger cars will be based on engine type and displacement, with a progressive coefficient tied to engine power.
  • First Deputy Prime Minister Denis Manturov said the preferential low rate remains for private imports up to 160 horsepower, covering more than 80% of the fleet.
  • Authorities said the delay protects buyers who already paid the fee under existing terms, with the new parameters not applied to those transactions.
  • Market participants expect a short pre‑change import push and a post‑December drop of about 15% in parallel imports above 160 hp, with price increases concentrated in the grey segment; earlier announcements triggered protests and a September surge to 48,400 used-car imports.