On 22 June 2012, the Russian State Duma adopted in the first reading draft bill No. 61272-6 amending Federal Law on Production and Consumption Waste that, in part, concerns the recycling of vehicles. These amendments introduce a mandatory car recycling scheme that includes a recycling fee imposed on the local production and import of used and new cars. The scheme, which will likely be expanded by the second reading, currently covers passenger cars, light commercial vehicles (LCVs), trucks and buses. The scheme is set to enter into force on 1 August 2012.

Draft bill No. 61272-6 provides for the mandatory recycling of end-of-life vehicles in categories M (passenger cars, buses) and N (trucks). To effectuate this new policy Russian producers of vehicles concerned, as well as importers of such vehicles, will be subject to a recycling fee, the amount of which will be set by the Russian Government.1 It is proposed that the recycling fee should not be charged if the manufacturer of a vehicle undertakes a commitment to ensure the vehicle’s subsequent recycling, as well as in other cases at the discretion of the Government. Importers shall pay a recycling charge upon the release of imported vehicles into free circulation. Funds obtained by collecting recycling fees will be spent to create the infrastructure needed to recycle cars and light-trucks.

While exact details of the implementing acts will be announced following the completion of the legislative procedure, according to the press reports,2 it is proposed that the recycling fees should be set at the following level, commensurate with the cost of recycling and the environmental harm inflicted by end-of-life vehicles:

Click here to view table.

Initially, it was planned that the car recycling scheme should be introduced for the customs territory of Russia, Belarus and Kazakhstan. However, as the three countries did not reach a consensus on this matter by the set deadline of 15 June 2012, recycling fees will apply only to Russian production and import of the covered vehicles.