The Russian government will allocate RUB 43 billion ($585 million) for the creation of infrastructure for electric vehicles (EVs) over the next three years, says deputy minister of economic development Ilya Torosov.

“The draft concept for the development of production and use of electric road transport involves the installation of 2,900 fast charging stations with capacity 150 kilowatt-hours until 2024,” the ministry confirms to Kallanish. “The money will not be allocated for all regions, but only for the pilot territories where the infrastructure will be built.”

According to Torosov, the subsidy will be aimed at co-financing 60% of the cost of creating fast chargers, as well as 30% of the cost of technical connection. The pilot territories will have the opportunity to "implement measures to further stimulate the demand for electric transport; we are talking about transport tax incentives or free parking.”

Earlier, Russia’s first deputy prime minister Andrei Belousov said Russia has two or three years to develop its own EV industry, otherwise the Russian business will be taken away by western competitors. In July, prime minister Mikhail Mishustin announced the creation in Russia of its own line of electric vehicles. 

The serial production of the first Russian electric vehicle Zetta is scheduled to begin by the end of 2021. Production is set to take place at project partner Togliatti's automotive plant. It plans to produce more than 15,000 units/year, half of which will go to foreign markets. With a maximum speed of 120 km/hour, the EV has an entry-level starting price of RUB 550,000.

Russia is yet to launch mass production of EVs. Kamaz and SPbPU are targeting first domestic electric vehicle production of Kama-1 later this or next year, with sales of 20,000 cars/year. Domestic carmaker Avtotor also said it will begin EV production in 2023. Avtovaz, which is producing Lada cars, is preparing for EV production in the next ten years.

Russian domestic sales of electric vehicles continued to increase in January-May to 650 units, which is seven times more than in the same period of 2020 (92 units). In May alone, 148 EVs were sold, which is almost 10 times more than in May 2020 (15).