OREANDA-NEWS. January 29, 2016. Russian Prime Minister, Dmitry Medvedev, has signed a decree of the government to support the Russian automobile industry for 2016 in the amount of 50 billion rubles. The Head of Government announced at the meeting, which took place on January 22nd at the AvtoVAZ.

As it was expected, the funding by the traditional anti-crisis measures remained the same, informed the newspaper "Kommersant". Thus, for the recycling program it will be sent 22.5 billion rubles, for the preferential leasing - 5 billion rubles, for the purchase of transport on natural gas it will be sent 3 billion rubles. Therewith, the funding of program of preferential car loan will be reduced compared to the previous year by 1.2 billion rubles, to 2.3 billion rubles, but the additional 9.9 billion rubles will be allocated for the fulfillment of obligations by the same programs, which were operated in 2013 and 2015.

However, in the meeting it was presented a new measure to stimulate demand - subsidies for the purchase of ambulances for 3 billion rubles. According to sources, subsidies to upgrade vehicles were lobbied by Russia's largest LCV "GAZ Group", however, also Ford with the model Transit, and Mercedes with the Sprinter, and UAZ can participate in the competition for it. Against this background, at the budget deficit the required 3 billion rubles will be taken from the amount that was envisaged to support exports.

However, Dmitry Medvedev and the head of the Industry and Trade, Denis Manturov, once again recognized that it exports against the background of devaluation of the ruble that gives a chance to compensate partially the collapse in demand in the Russian market. In accordance with the presentation of the Industry and Trade in the meeting, it is clear that the agency expects the start of the production in Algeria, which is organized by the Russian subsidiary of Renault with a potential of 22 thousand vehicles this year. In the second place by sales for the Russian car industry (11 thousand cars) – there is Iran, where it could be organized the assembly of KAMAZ, "GAZ Group", UAZ, AvtoVAZ and Nissan. In the markets of Europe Ministry of Industry and Trade expects to sell through direct imports of about 5 thousand cars (AvtoVAZ, "GAZ Group"). By 2025, the Ministry of Industry hopes to increase the share of Russian exports of cars from 7.7% to 25%.

The second way of anti-crisis development of the automotive industry should be import substitution of components. However, specific measures will appear only within the new industry development strategy, which is to be prepared before March 1st, 2016.

Vladimir Bespalov from "VTB Capital," notes that in the short term, public procurement – is a more effective measure of support for the automotive industry than subsidizing of exports. Expert does not expect the strong growth in exports this year - for this you need to enter new markets, which will require a long building of distribution, service, and so on. However, according to Mr. Bespalov, long-term government purchases "cannot be a panacea for all problems" . Betting on the localization and export, he also believes not the "growth points" but defense mechanisms in crisis situations. Vladimir Bespalov concludes that the full recovery of the car market may occur only in case of the general stabilization of the economy and consumer demand in general.