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flag Russia's vehicle scrappage fee revenue fell short in 2025 due to weak car sales, despite projected growth.

flag Russia anticipates a significant increase in vehicle scrappage fee revenues for 2025 and 2026, with the 2026 budget projecting nearly 1.65 trillion roubles, a 46.7% rise from 2025, driven by annual fee adjustments and expected production recovery. flag However, as of September 23, only 267 billion roubles had been collected, well below forecasts. flag Weak car sales—down 23% year-on-year in the first eight months—have pressured automakers, some of whom have reduced workweeks. flag Both domestic and imported vehicles are subject to fees that vary by type, and a proposed new calculation method may raise prices for luxury vehicles. flag To support the industry, the government provides subsidies, contributing to higher prices and a shrinking market.

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