Russian carmakers ask for RUB 1,35 billion

Nowadays the Russian automotive industry goes through a bad stretch. The decreasing sales of passenger cars picked up the pace and amounted to 37,9% for February, 2015 in comparison with the same period of the last year. Within a month the Russians have bought 78 228 cars less than in 2014. Nevertheless, Russia still remains one of the world key car markets. Our country is in the TOP-10 in the world rating and occupies 2,9% of the global car sales.

The reports concerning the decline of production and downsizing on the car plants emerged in the end of the last year. Thus in 2015 the Renault and Nissan suspended the production in Russia and the American largest auto giant General Motors announced last week that Opel and massive models of Chevrolet will exit the Russian market. At the same time other automobile makers emphasize that they are not going to leave the Russian market.

The growth rate reduction of the real household disposable income is marked out among primary causes of the current automakers’ crisis. This lead to decrease in consumer’s demand. In this respect, low-end cars and mid-range segment cars are the first in the firing line.

At the moment the automobile industry of the Russian Federation creates around 1% of GDP, providing about 400 thousand workplaces directly in companies-manufacturers of cars and spare parts. Besides, the industry creates nearly 1 000 000 workplaces in associated and dealer companies.

At the same time the Russian plants announced that they are going to reduce more than 4 thousand employees at the end of 2015. It amounts to 1% industry wide. However in order to estimate the number of injured, it is necessary to recollect that the reductions began last year. In addition, the reduction of employees is expected in the associated dealer centers. They have already started to suffer the customer outflow, due to the fact that citizens with increasing frequency apply to independent service centers, in order to save money.

In spite of the fact that after the crisis of 2008 the Russian car plants significantly reduced the staff, even the optimized staff seems to be redundant under current low demand on the market. However, it might be called for under the recovery of the market, which is forecasted in 2016. In order to provide the staff employment, the car makers asked government to give them RUB 1,35 billion.

Last week the Prime Minister Dmitry Medvedev announced on the government session that RUB 2 billion will be subsidized to car plant staff employment programs. The monetary assets will be distributed between several subjects of the Russian Federation, in particular the Republic of Tatarstan, Altai Territory, Samara and Tver regions. The local authorities could use the money for vocational and practical training of those who lost their job or those who are in danger of being dismissed and in order to organize temporary workplaces. At the same time the important enterprises of these regions, where the economic situation is difficult, will get the government support. First of all, it is subject to such enterprises as Kamaz, AvtoVaz, AltaiVagon and Tverskoi vagonostroitelny zavod.

A new Code of Administrative Court Procedure will start working in Russia

The Federation Council approved the Code of Administrative Court Procedure (CACP), which regulates the procedure of administrative legal proceedings by consideration and adjudgment of administrative cases by the Supreme Court of Russia and general jurisdiction courts. The proposal to adopt such a Code was made by the President Vladimir Putin in his Address to the Federal Assembly in December 2012. In general, the Code will take effect since September 15, 2015 (except certain provisions).

The new legislation introduces the concept of «administrative case», «administrative statement of claim» etc. Persons, participating in a case, are determined: the parties (administrative plaintiff and administrative defendant), interested persons, procurator, bodies, organizations and individuals, appealing to a court to protect the interests of others. Only persons with higher legal education may be representatives in the court of administrative cases.

It’s provided that every person, participating in a case, is obligated to prove those circumstances, to which it refers. Here it’s important to underscore that the obligation to prove the legality of disputed legal acts, decisions, actions (inaction) of authorities and officials is imposed on these persons.

The Code will regulate the order of consideration and proceedings on such administrative cases as: about collection of obligatory payments and sanctions; about contesting of results of cadastral value determinations; cases, being considered by the Disciplinary Board of the Supreme Court of the Russian Federation; about contesting of regulatory legal acts and others.