Russia earmarks 352 mln USD to support auto industry

Source: Xinhua | 2020-05-22

The Russian government will allocate 25 billion rubles (352 million U.S. dollars) to support the domestic automotive industry hit by the COVID-19 pandemic, Prime Minister Mikhail Mishustin said Thursday.

"Of the funds, five billion rubles will be spent on purchasing ambulances," Mishustin said at a government meeting.

The funds will also be used for preferential car loans and leasing, as well as for promoting purchases of Russia-made vehicles for companies with state participation, he said.

In April, sales of new cars and light commercial vehicles in Russia plummeted by 102,089 units or 72.4 percent compared to the same period last year, according to the Association of European Businesses (AEB).

"The Russian automotive industry experienced the strongest monthly sales decrease in AEB statistics history," the AEB said, calling last month "Black April" due to coronavirus-related restrictions.