Bogdan Motors Russian exports could be exempt from recycling fee

Imports of Ukrainian-made vehicles to Russia might be exempt from a recently adopted special recycling fee, Prime Minister Mykola Azarov said yesterday (via Interfax). The base fee is set at RUR 26,800 (USD 840) per imported vehicle, with an engine size not exceeding 2,000 ccm and will be implemented as of September 1.

Roman Dmytrenko: An exemption from the recycling fee would be encouraging for Bogdan Motors (LUAZ UK) as it would ease concerns over the company’s competitive position in the Russian market (which accounts for 90% of Bogdan-made car sales). The recycling fee accounts for about 10% of Bohdan cars’ price.