Russian Far East Rises Up Against Massive New Car Recycling Fee

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This is Maksim Poliakov from the online outlet 7x7. Starting December 1, 2025, only a small number of Russians will be able to afford a new car. Why? Because the vehicle recycling fee (utilization fee) is about to skyrocket — from around €100 to €10,000 or even €50,000, depending on the car model. That means a dramatic price hike for sedans, SUVs, and especially for hybrids and electric vehicles, which will be effectively pushed out of the market.

Officially, this fee is meant to cover the future recycling of a car. In practice, it serves as a protectionist measure for Russian car manufacturers — and a pressure tactic to make foreign brands, especially Chinese ones, localize production in Russia.

Russians are not staying silent. The bill has already received over 132,000 negative reactions on the public comments portal (compared to just 691 positive ones). Amid public protests in the country’s east, the government has postponed the increase by a month. But Primorsky Krai remains the loudest voice of protest. Here's why.

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In Primorsky Krai, Imported Cars Are a Lifeline

“Who wants that piece of scrap metal [Russian cars]? No one’s stupid enough to buy it,” a car dealer from Vladivostok told Regional Aspect media.

According to TASS, imports of Japanese cars to Russia grew by 20% in the first half of 2025, compared to the same period in 2024. Dealers in Vladivostok alone brought in 137,000 vehicles from Japan, South Korea, and China.

Most residents of Primorsky Krai drive foreign cars Japanese, Korean, or Chinese. Russian-made vehicles are rarely seen. The reason? Better quality and better price.

A writer on the website of local dealership Ondi Cars summed it up: “How long do we have to wait for a decent minivan? A modern SUV? A good-quality crossover with three rows of seats?”

Locals have no plans to switch to domestic brands. In fact, in the lead-up to December 1, imports quadrupled.

The protest wave has spread beyond the Far East: Novosibirsk, Kamchatka, Omsk, and Khabarovsk have also seen public discontent. In some cases, regional governments blocked rallies.

 

Thousands of Car Dealers Could Lose Their Jobs

During a rally in Vladivostok on October 11, car dealers warned that thousands of jobs would disappear if the fee goes into effect.

One dealer told Regional Aspect that his colleagues have already sold off their inventory and moved to Thailand. Where they now rent cars to tourists. It's simply more profitable. Vladivostok-based dealers are already advertising car rentals in Thailand and China.

“This fee will finish off the Far East. Back in the day, the whole country brought money here. We shipped cars all across Russia. But that’s gone. The Ministry has already crushed us  and this hike will destroy us,” said one dealer.

 

Even Russian Cars Will Get More Expensive

Locals don’t believe the recycling fee is really about recycling. Many fear it will also increase the cost of domestic vehicles.

One user on the Troyka Telegram channel wrote: “This hike will kill the Russian car industry and make it impossible for ordinary people to afford a car.”

He claims that Russian manufacturers often buy cheap Chinese cars, swap a few parts, and triple the price.

“In reality, the Ministry is turning our car industry into a branded dealership network with monopoly pricing, no customs fees, but a 3x markup,” the same user added.

Auto expert Aleksandr Gusarov predicts that even a domestic Lada will cost up to 2 million rubles under the new rules, because Russian manufacturers will also have to pay the higher fee.

“This wasn’t part of any long-term plan. And now, the privilege of owning a car is being taken away from everyone in the country. Prices will rise across the board. This means a total collapse of the market, bankrupt dealerships, and mass unemployment,” Gusarov told Regional Aspect.

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