On May 13, 2025, Russian lawmakers moved forward with the controversial taxi localization bill, passing it in both the second and third readings despite widespread opposition from various industry stakeholders.
The bill, which has generated significant backlash from business groups, relevant associations, and even government entities, aims to increase the use of domestically produced vehicles for passenger taxis across the country.
The Road to Controversy: From Initial Draft to Final Version
The bill’s journey began in January 2024 when it was first introduced in the State Duma.
At the time, the draft law was considered underdeveloped, prompting State Duma Speaker Vyacheslav Volodin to acknowledge the need for revisions.
He stated that the initial version lacked sufficient planning, which led to a comprehensive overhaul in collaboration with industry representatives, ministries, and other relevant stakeholders.
However, despite these revisions, many in the taxi industry feel their concerns were ignored in the final version of the bill.
Industry Concerns and Warnings of Negative Impact
Natalia Lozinskaya, Executive Director of the National Taxi Council, voiced her disappointment, emphasizing that the business sector’s proposals were disregarded in the final draft.
Furthermore, the Analytical Center under the Russian Government has raised alarms, warning that the bill’s passage could lead to a severe shortage of taxi drivers.
The concern is that many will not be able to afford the new Russian-made vehicles mandated by the law.
As a result, the cost of taxi services could skyrocket, and the overall quality of service could decline.
Key Provisions of the New Bill
The law specifies two primary ways for vehicles to qualify for the official taxi registry.
Firstly, a vehicle must meet a government-defined “localization score,” which currently sits at 3,200 points.
Secondly, vehicles manufactured under special investment contracts signed between March 1, 2022, and March 1, 2025, will also be eligible.
However, starting January 1, 2033, only the localization score will be considered for registration.
The law is scheduled to come into effect on March 1, 2026, with delayed implementation for certain regions.
Kaliningrad and Siberia will have until March 1, 2028, to comply, while the Russian Far East will have until March 1, 2030.
AvtoVAZ’s Role and the Impact on the Taxi Market
AvtoVAZ, Russia’s leading automotive manufacturer, is the primary advocate behind this bill.
The company, which has experienced a dramatic decline in vehicle sales in recent years, stands to benefit significantly from the bill’s passage.
With this law, AvtoVAZ is expected to secure a near-monopoly on the taxi vehicle market, receiving procurement contracts for up to 60,000 vehicles annually.
This move aims to boost the company’s sales and ensure a stable market for its vehicles.
While AvtoVAZ’s support for the bill is clear, the wider implications for the taxi industry remain a topic of concern, with many questioning the long-term effects on both service quality and accessibility.