Kazakhstan wants Russia to free its cars from disposal fee

Last year, Russia significantly increased its disposal fee for imported vehicles / Photo: Shutterstock, photo editor: Milosh Muratovskiy

Kazakhstan is going to ask Russia to exempt its domestically manufactured cars from the disposal fee, according to a report on the implementation of the Ministry of Industry and Construction’s development plan for the 2023–2027 period, covering the results of 2024, which is available on the agency’s official website. The Inbusiness.kz news portal was the first to notice the document.

«We propose considering the possibility of introducing quantitative quotas for Kazakhstan-manufactured cars — such as Kia — which would be exempt from the disposal fee obligation in Russia within the framework of industrial cooperation meetings,» the report read.

Following the same document, the agency points to a 3% decrease in the production of motor vehicles, trailers and semi-trailers in 2024. The ministry attributes this decline to a drop in demand for domestic vehicles, which occurred due to:

Increased gray vehicle imports;
Adjusted borrower’s debt ratio;
Heated discussions on a petition to eliminate the vehicle disposal and first registration fees;
Raised CKD assembly rate to 20% in 2024.

The agency also stated that SaryArkaAvtoProm, a large Kazakhstani vehicle manufacturer, reduced its output due to modernization, renovation and maintenance activities. At the same time, Hyundai Trans Kazakhstan faced challenges related to customs clearance and continues to experience difficulties with cargo delivery via China and Russia.

On Oct. 1, 2024, Russia introduced a disposal fee increase ranging from 70% to 85% on average, with a planned annual increase of 10% to 20% on average until 2030. However, the new rates apply only to private and legal entities importing vehicles for resale. This fee may reach up to 2.2 million rubles (approximately $26,909) for vehicles with an engine displacement exceeding 3.5 liters.

Meanwhile, in Kazakhstan, a petition to eliminate the disposal fee was launched in late May 2024 and signed by more than 50,000 citizens. However, the Ministry of Industry rejected the demands. In turn, the agency proposed measures to prevent illegal vehicle imports from third-party countries, including a ban on importing more than one car for private use per year and stricter control over certified testing laboratories that issue official safety compliance certificates for vehicles.