Russian deputy prime minister Yury Borisov has announced that the Russian government has allocated RUB 30 billion ($471.07 million) to support the automotive component industry.
The funds will be distributed to manufacturers through grants from Russia’s Industrial Development Fund (IDF). This measure will increase budget funding for the IDF so that it can issue more soft loans to manufacturers of auto components to replace imported products.
The global automotive industry has already been facing component shortage amid the impacts of the pandemic. In addition, Russian automotive producers have problems purchasing components from abroad given the sanctions imposed against the country. This has led to the need to replace these products with domestic counterparts.