The Economic Ministry of the Tuva republic will provide subsidies to shuttle bus operators to help them replace Gazelle minibuses with Ford ones, the republic's website announced, Interfax reported Wednesday.
The ministry will provide up to half the cost of lease agreements for Fords.
"The whole shuttle bus fleet, which is almost entirely owned by private carriers, will be upgraded with the help of subsidies under the program aimed at supporting small businesses," the website stated.
The ministry did not disclose the volume of the subsidies.
GAZ Group, which produces Gazelles, said Wednesday that it plans to challenge the subsidies in court.
"The Tuva government's announcement is unprecedented in terms of its open violation of several legal requirements for regional authorities," GAZ Vice President Yelena Matveyeva was quoted as saying in a press release. "We believe that the plans announced by the Tuva government are contrary to antitrust law and to the principles of an open and transparent public procurement system whose aim is to eliminate corruption."
She said that GAZ would go to court to seek the republic's compliance with the law and that the company would sue to protect its reputation.
GAZ said the Tuva government had misled taxi operators about the quality of Gazelles, understated their mileage and overstated their fuel consumption.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
