Reform of the Recycling Fee in Russia: How Car Prices Will Change

Photo: Rolf.ru

Russia is changing the rules for calculating the recycling fee on passenger cars. The reform was initially planned to take effect on November 1, 2025, but the date was postponed to December 1, reports RBC. Authorities explained that the decision aims to protect the interests of buyers who have already ordered vehicles under the previous terms.

Reference: The recycling fee is a payment charged when importing or producing a car to offset the costs of its future disposal. In Russia, it has been
applied since 2012 to both new and used vehicles. The rate depends on the car’s characteristics, and the collected funds are directed toward developing the recycling system and supporting the domestic auto industry.

The updated rules will change the calculation mechanism: the base rate will depend on the type and engine size, while the coefficient will vary according to power output on a progressive scale. The higher the power, the greater the fee. For cars up to 160 horsepower imported for personal use, the preferential coefficient will remain. According to the Ministry of Industry and Trade, more than 80% of Russia’s car fleet falls under this category. The new rules will not affect owners who have already paid the recycling fee under the previous system.

Manturov: “There Is No Goal to Close the Car Market”

In an interview with RIA Novosti, First Deputy Prime Minister of Russia Denis Manturov explained that the government has no intention to “close” the market to foreign manufacturers: “We have said many times that our goal is not to isolate the market and make producers live without competition. That would only slow their own development.” He added that the new rules aim to make domestic car production more economically viable than direct imports.

The main priority remains the technological independence of the Russian automotive industry. After the 2022 sanctions, the sector went through a severe crisis, but almost all previously “abandoned plants” have been relaunched, restoring jobs. Today, 11 out of 13 plants for passenger car production are operating again. Over 260 billion rubles have been allocated to support the industry in the past three years, almost three-quarters of which were financed through recycling-fee revenues. As a result, nearly half of 740 critical components are now produced in Russia.

A Promising Future: Russia’s Growing Auto Industry

Denis Manturov noted that the updated recycling-fee system will not restrict the market but instead stimulate domestic production. At the former factories of foreign brands, production of Russian and Chinese models, including Tenet and Haval, has already begun. “Technological independence has been placed at the forefront,” he said. “We have built a new framework for cooperation with foreign partners, and control over facilities and technologies now lies in Russian hands.”

The Deputy Prime Minister is confident that the fee adjustment will not trigger a price surge. Exchange rates, logistics, and monetary policy have a stronger effect on pricing, and no dramatic growth has occurred — at major dealers such as Rolf and Avilon, prices have even fallen by 4–5%. “It is important for us to preserve existing production sites, launch new ones, and guarantee citizens a wide choice of affordable cars. The path is challenging, but we are moving forward confidently,” Manturov summed up.



h2]Experts’ Forecasts: Sharp Price Growth Ahead[/h2]
According to Autonews.ru, the new method of calculating the recycling fee will affect the cost of all cars sold on the Russian market. Sergey Tselikov, head of the Avtostat analytics agency, emphasized that price growth will be broad-based but vary in scale. Oleg Barinov, Executive Director of the Russian Automobile Dealers Association (ROAD), called the new system “an additional challenge for the market.” He expects the prices of imported vehicles to rise by hundreds of thousands of rubles.

Premium Segment

Independent expert Alexey Tuzov noted that the premium segment will be hit the hardest. European and American sports cars, SUVs such as Mercedes-Benz GLS and BMW X7, as well as Japanese and Korean models like Toyota Land Cruiser and Kia Mohave, will become unprofitable to import.

Nikolay Ivanov from Rolf estimates that the average market price increase could reach 20%, while Renat Tyukteev from Avilon expects growth of 800 thousand rubles or more. Andrey Olkhovsky, CEO of Avtodom Group, believes that the cost of popular Li Auto and Aito Seres models will rise by about 2 million rubles.

Used-Car Market

Alexander Nikolayev, Deputy Head of Sales at Major Auto, predicts that used-car prices will increase with a two-to-three-month delay. According to Avilon, the rise will reach 4–5%, but if demand remains low, a subsequent correction of 2–3% downward is possible.
Even cars with engines under 160 hp will not escape higher prices, although Mikhail Plotnikov, CEO of Motor-Place, expects a moderate increase of about 5–10%. Prices for such vehicles remain the lowest in their class.



The reform has already triggered a short-term sales spike as buyers rush to purchase cars under the old rates. Oleg Barinov believes that, in the long term, this will lead to fewer import channels, less choice, and higher prices. Experts predict that the new recycling-fee system will reshape the market, widening the gap between mass and premium segments. Most buyers are expected to shift toward lower-powered vehicles, while parallel-import offers will turn into a luxury for a limited circle of clients.