Russia’s Electric Car Strategy to Cost $8 Billion Through 2030

(Bloomberg) --

Russia, one of the world’s biggest oil and gas producers, has a plan to bring more electric vehicles to its roads over the next three years and to build a market for battery-powered cars. 

According to the strategy, approved by the government on Monday, the production of EVs should reach 10% of all cars produced by end of 2030. The cost will be about 591 billion rubles ($8 billion), according to government’s press office.

In the first stage of the strategy, from 2021 through 2024, the nation aims to have at least 25,000 EVs and more than 9,000 charging stations on its roads. To encourage EV adoption, the government will offer buyers incentives, including loans and easy leasing terms for the battery powered cars. 

Additionally, starting in 2022 EVs will travel for free on Russia’s toll roads. Electric vehicles account for less than 0.2% of the nation’s total passenger-car fleet, according to Moscow-based Vygon Consulting. 

“A number of countries have already announced their desire to abandon transport with internal combustion engines,” Prime Minister Mikhail Mishustin said on Monday. “It’s obvious that electric cars and cars that run on more environmentally friendly power units are the future. And we also need to actively develop this sector.”

©2021 Bloomberg L.P.