The government allocated 30 billion rubles to support the automotive component industry

The government has allocated 30 billion rubles to support the automotive component industry, Russian Deputy Prime Minister Yury Borisov said on the air of "Russia 24" channel. The Ministry of Industry and Trade of the Russian Federation included the corresponding measure in the second package of the plan to support the Russian economy in the face of sanctions. The funds will be distributed to manufacturers through grants from the Industry Development Fund. This measure involves an increase in budget funding for the IDF so that it can issue more soft loans to manufacturers of auto components to replace imported products. The mechanism works as follows: the IDF issues a preferential loan for a project in the amount of 50 million rubles at 1% per annum, and when the project is implemented within the time period set by the company, the Ministry of Industry and Trade gives the enterprise a subsidy to repay this loan.

Recall that Russian and foreign car plants localized in the Russian Federation had difficulties with the supply of auto components already in 2021, when the global shortage of microelectronics reached our country. Before the industry had time to recover in 2022, foreign business began to reduce rapidly its presence in Russia due to a special military operation in Ukraine. The subsequent break in the supply chains of components from abroad led to the need to replace these products with domestic counterparts.