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Transition to Domestic Cars in Taxi: Between Sovereignty and Market Challenges

Andrew Fink by Andrew Fink
22/08/2023
in Russia
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Amendments to transportation legislation cause debate and concern

Author: Ivan Petrov, an experienced journalist with 10 years of experience

Moscow, August 22, 2023 – The Russian government is preparing changes in the legislation on taxi transportation, aimed at the complete transfer of this area to domestic cars. The State Council Transport Commission supported the relevant amendments designed to strengthen the federal technological sovereignty and sustainability of the domestic transport network.

According to the plans of officials, the transfer of taxis to domestic cars should help reduce dependence on imported technologies and equipment, as well as to make the domestic transport infrastructure less vulnerable to sanctions pressure. However, this decision caused a lively discussion and concerns among representatives of the taxi industry.

The amendments will affect the law on taxi transportation (580-FZ) and provide for the establishment of localization levels for cars that can be used in the taxi industry. Among the companies that meet these requirements are AvtoVAZ, UAZ and the Russian company of the Chinese brand Haval.

Balance of interests

However, the National Taxi Council Association expressed its concerns about the planned transition to domestic cars. At the end of July, she sent a letter to the Prime Minister, where she emphasized that the forced transfer to domestic cars could lead to higher transportation prices and reduce transport accessibility for the population.

Economic and market aspects

The economic aspects of this decision also raise certain questions. On the one hand, an increase in demand for domestic cars can stimulate the development of the domestic auto industry and the creation of new jobs. On the other hand, this may affect the cost of taxi services and necessitate a change in the pricing policy of companies.

Finding balance

The transition to domestic cars in taxis is a complex process that requires balancing the interests of all parties – the state, business and end consumers. The decision on a full transfer to domestic cars, as experts emphasize, should take into account the real economic and social consequences, as well as possible alternative ways of developing the taxi industry.

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In St. Petersburg, security forces searched the homes of Viasna activists and a member of the Yabloko party

The former top manager of the FSS was sentenced to 7 years in prison for fraud with the Sotsstrakh system for 310 million rubles.

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