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not intend to grant an investment-linked tax deduction to HVO, even under high oil prices.
· MinFin supports the further rollout of EPT in the future. It also indicated that it remained open to a dialogue on oil industry taxes.
9.1.2 Automotive sector news
Sales of cars and light commercial vehicles (LCVs) declined by 4.2% year on year in January 2021, according to the latest data of the AEB Automobile Manufacturers Committee (AEB AMC).
As reported by bne IntelliNews, the Russian car market showed its first signs of recovery in 2H20, but this was not enough to offset the shock to sales seen at the beginning of 2020. Overall in 2020 the market declined by 9% to 1.6mn vehicles sold.
"After three months of top growth, since December 2020 the market has been slightly decreasing," the head of the AEB, Thomas Staertzel, reminded in the press release. The AEB still expects that with stronger February and March sales the first quarter will be on the level of the previous year.
VTB Capital (VTBC) on February 4 commented that January's decline was "quite moderate, given that some demand was pulled forward at the end of last year in anticipation of vehicle price increases." The analysts continue to expect that the market will add 2-5% in 2021.
Russia's largest carmaker AvtoVAZ's sales were flat y/y at 21,857 units in January. The company remained the market leader with a 23% share, while the AvtoVAZ-Renault-Nissan-Mitsubishi alliance controlled 36.4% of the market in January.
116 RUSSIA Country Report March 2021 www.intellinews.com