Russia launches car scrapping scheme to boost economy

Jan 15th, 2010 | By | Category: Asides

In an attempt to kick-start the domestic car industry – thus boosting the economy, page Russia is launching a car scrapping scheme.

The Russian Industry and Trade Minster Viktor Khristenko briefed prime minister Vladimir Putin on the scheme that will start on 8 March. He says the ministry is looking into ways to implement the scheme. He added that some specific detailed rules need to be established before the scheme is due to begin.

Under the plan, capsule every citizen who has a car that was built before 1999, website and who has owned the car for over a year, can scrap the car in exchange for a subsidy of 50,000 roubles ($1,707) against a new Russian-built car. The money can be put towards one of 65 automobiles made in Russian factories by Russian employees.

Local media also reported that the minister called for a further 1 billion rouble investment into compensation for the transport costs linked with the scheme.

Putin urged Khristenko to speed up the construction of the country’s car recycling facilities in preparation for the scheme’s launch. He also urged the minister to make sure the scheme is effectively operated.

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