Belgee Sees Increased Recycling Fee as Incentive to Localize Production in Russia

Possible changes in the methodology for calculating the recycling fee, which come into force on November 1, may affect the increase in the average cost of cars in the Russian market, which will be followed by a decrease in total sales, according to Denis Kononov, Executive Director for Marketing of the Belarusian brand Belgee in Russia.

The recycling fee is a one-time payment levied on importers, manufacturers, or buyers of vehicles for the disposal of vehicles after their operation. If approved, the new rules for calculating the recycling fee will take effect as early as November 1, 2025.

The increase in the recycling fee does not directly affect the cost of Belgee cars in Russia, since the fee is paid by the production enterprise in Belarus within the common customs territory of the Union State, the company added.

Opinions regarding the introduction of the recycling fee and its consequences vary significantly. Thus, the president of the Avtotor holding and former head of the Department of Automotive Industry and Railway Engineering of the Ministry of Industry and Trade, Denis Pak, supports the initiative, while the dealer community, on the contrary, is confident that after changes in the recycling fee, the cost of imported cars may increase significantly.

At the same time, back in September, the Ministry of Industry and Trade proposed linking the recycling fee to engine power with the introduction of a progressive scale. Thus, the preferential recycling fee, which is paid by individuals when importing a car from abroad, will only apply to cars with a capacity of up to 160 hp, and a commercial recycling fee will apply to cars with a higher capacity - many times higher.

Earlierwww1.ruwrote about the intention of the Ministry of Industry and Trade to apply a progressive scale of recycling fees.

Read also materials on the topic:

• Preferential recycling fee will continue to apply to the most popular cars
• AvtoVAZ Denies Rumors of Lobbying for Increased Recycling Fee
• Demand increased by 300%: Russians began buying up cars from abroad before the increase in the recycling fee from November 1