Support The Moscow Times!

Russia to Subsidize Purchase of Vehicles From Sanctioned Oligarch’s Carmaking Giant

Moskva News Agency

The Russian government will subsidize the National Guard’s purchase of hundreds of armored vehicles and natural gas cars from firms controlled by the sanctioned oligarch Oleg Deripaska, according to a newly passed decree.

Deripaska was named in a list of sweeping U.S. sanctions against major Russian businessmen and structures last April for “malign activities.” The U.S. Treasury Department extended the deadline for Deripaska to reduce his holdings in EN+, Rusal and the car manufacturer Gaz PAO by Jan. 7, 2019.

A decree on the government’s legal portal allocates 2 billion rubles ($30.2 million) for 600 National Guard vehicles and 1.5 billion rubles for the Industry Ministry to buy 1,500 natural gas cars from firms belonging to Gaz.

An explanatory note states that the purchase “will allow an increase in production capacity among sanctioned companies and address national security challenges.”

All 3.5 billion rubles will be allocated from Russia’s rainy-day Reserve Fund that was merged with the National Welfare Fund (NWF) and disbanded as of Jan. 1.

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

Please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world's largest country.