Russia wants to subsidise EVs to increase uptake

Russia’s Ministry of Economic Development plans to increase demand for locally produced electric vehicles (EVs) by making them more affordable to its citizens.

With a subsidy of 25 per cent off the price of a Russian-made EV up to ₽625,000 (AU$11,570), the Ministry hopes to increase their production in the nation, according to Reuters.

It said the country is aiming to hit an annual EV production target of 220,000 units by 2030, with officials claiming international brands are considering manufacturing in Russia too.

The Russian Minister of Economic Development, Maxim Reshetnikov, said the subsidy plan could be carried out as soon as next year.

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This development comes only days after the Ministry convened to prepare for the upcoming Glasgow meeting of the United Nations Framework Convention on Climate Change participants – with a focus on Article 6 of the Paris Agreement.

Article 6 is essentially a promotion of a carbon tax, encouraging countries to lower emissions or bear the economic brunt of climate change.

The clear connection between the two for Reshetnikov is that an uptake in EVs would benefit both the Russian economy, and its commitment to the Paris Agreement.

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Zetta, Russia's incredibly affordable EV

The Moscow Times reports the ministry’s claims that, by 2030, there could be 1.5 million EVs on Russian roads.

Presently, EV manufacturing in Russia is almost non-existent, with only a mostly exported compact EV called the Zetta (Zero Emission Terra Transport Asset) being built locally.

Early reports say the company only planned to build 15,000 a year, with 10,000 destined for export. Each unit is said to cost from ₽450,000 (AU$8300).

According to Reuters, Russian EV infrastructure and uptake has been slim, with Moscow estimated to be home to 2000 EVs, with 200 charging stations planned to be built annually starting this year.