Russia rumoured to introduce EV subsidies in 2022

The subsidy programme for electric cars in Russia could start next year, according to a media report. According to the report, customers are to receive 25 per cent of the purchase price of each electric car produced in Russia, up to a maximum of 625,000 roubles (7,210 euros).

With the one billion subsidy package by 2030, Russia wants to support the sales and production of electric cars, because the country is lagging behind in the introduction of electric cars. As Reuters writes, out of an estimated 45 million cars in Russia, just 11,000 are electric.

The news agency quotes Maxim Kolesnikov, head of the department at the Ministry of Economy, on the scope of the subsidy programme. The problem with the subsidy, however, is that no electric cars are currently being built in Russia. As reported, production of the Zetta is supposed to start this year. However, the project has already been delayed several times and market success for the three-door small car is uncertain even with the subsidy.

In the case of the Zetta, the maximum amount of 625,000 euros would not apply, but the 25 per cent limit: With a base price of 550,000 euros, the small car is cheaper than the maximum subsidy amount. In this case, 25 per cent or 137,500 roubles (1,600 euros) would be subsidised, which means that the car would still cost about 4,750 euros.

According to earlier data, Russia is aiming for ten per cent of all cars built in the country to have an electric drive by 2030. Reuters now quotes the figure of 220,000 units by 2030.

However, electrification seems to be progressing faster in city buses, with the capital Moscow planning to procure only electric buses in the future. There is also movement in other parts of the BEV value chain: In March, the Russian nuclear corporation Rosatom announced plans to build a battery factory.