Russia to Expand Electric Vehicle Adoption... Plans to Provide Purchase Subsidies

[Photo by Tas News Agency]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 4th (local time) that the Russian government plans to provide subsidies for electric vehicle purchases to increase the production and sales of electric vehicles within the country.

A senior official from the Russian Ministry of Economy explained that electric vehicles in Russia are sold at a much higher price than internal combustion engine vehicles, and the purpose of the subsidy is to make it easier for Russians to use electric vehicles.

Russia is rich in resources such as crude oil and natural gas, so the spread of electric vehicles is significantly behind other European countries. Electric vehicles are not even produced locally.

As of last year, it is estimated that out of 45 million vehicles operating in Russia, only about 11,000 are electric vehicles.

Russia joined the Paris Climate Agreement in 2019. It plans to reduce greenhouse gas emissions to 70% of the 1990 emission levels by 2030.

In terms of greenhouse gas reduction, Russia aims to produce 220,000 electric vehicles annually by 2030. According to the relevant authorities, some foreign electric vehicle companies have already shown interest in local production in Russia.

The Russian government announced that it plans to provide a subsidy of about 25% of the purchase price when buying electric vehicles produced in Russia. The maximum subsidy will be 625,000 rubles (approximately 9.78 million KRW) and is expected to be implemented starting next year.