Leu Marholin: Vehicle recycling fee to affect MAZ plant

The increase in prices of MAZ trucks will make them uncompetitive in the Russian market.

Economist Leu Marholin discussed the imposing of vehicle recycling fees in Belarus with charter97.org.

“When Russia joined the World Trade Organisation, it was supposed to reduce customs fees on imported vehicles. It imposed the recycling fee to compensate for the losses. Initially, Russia introduced the fee on manufacturers outside the Customs Union, but they applied to the European Court. Russia had to impose the fee on all manufacturers, even for domestic ones. As for Russian car-makers, the state will compensate them. The expenses are provided for by the state budget. As for other members of the Customs Union, they will have to look for a solution themselves. Cars are not the main problem. As people say, we haven't lived well, so we don't expect a better life. The main problem is our MAZ trucks. The vehicle recycling fee, which is rather high, will be applied to them too. Taking into account that Russia is our key market, we need to think about our further actions and possibly provide compensation to vehicle manufacturers from the state budget. Otherwise prices will grow and our trucks will become even less competitive in the Russian market,” he noted.

The economist adds that if Belarus refuses to introduce the vehicle recycling fee, it will become a “black hole”, through which cars will get to Russia.

“The fees on the vehicles that are sold in Belarus will remain in the country. Maybe the money will be spent on compensations to our manufacturers, who export their vehicles to Russia, or maybe on something else. We never have spare money. The fee will become another tool to rob people,” Leu Marholin said.

We remind that according to Lukashenka's decree, the vehicle recycling fee in Belarus takes effect on March 1.