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June 14, 2019

Russian leasing market grows by 20% in 2018

The leasing industry of Russia has released its annual results at the conclusion of its ninth Annual Congress in St. Petersburg.

By Christopher Marchant

The leasing industry of Russia has released its annual results at the conclusion of its ninth Annual Congress in St. Petersburg.

In 2018 the market reached a record level of 1.3tn rubles (£16bn), which is 20% more than the results of 2017 and 1.3% of Russia’s GDP. At the same time, the market volume in terms of the amount of leasing portfolios exceeded 4.3tn rubles as of 1st January 2019.

The volume of new business of leasing trucks was 244.97bn rubles, a year-on-year decline. There was a reported decrease in state support under the program of preferential leasing, which was designed, among other things, to support this sector.

The sales of passenger cars grew for the second year in a row, while, according to estimates, the degree of leasing penetration into the auto sales of passenger cars has not changed significantly over the past two years and is at 9%. At the same time, as a result of the active growth in sales of passenger cars over the past two years, the passenger car market is considered close to saturation.

The Ministry of Finance of the Russian Federation and the Central Bank of the Russian Federation began an institutional reform of the leasing market in early 2016. At a meeting with the Central Bank of the Russian Federation, a goal of institutional reform was formulated: “Creating a favorable operating environment, maintaining reliability and ensuring the effectiveness of financial leasing to meet the needs of market participants in updating fixed assets, which, ultimately, will contribute to investment and economic growth in the Russian economy. ”

Last year Alphabet, the fleet leasing division of the BMW, has expanded operations to Russia through a local partner.

The company has partnered with Major Profi, the leasing division of car retail group Major Auto.

Rüdiger Ebel, head of new markets at Alphabet International, said: “Major Profi has a reputation as an excellent service provider for its customers. We look forward to working with our new partners to expand our range of services in a country with a growing economy.”

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