Kathrine Frich
A flagship symbol of Russia’s technological ambition has run into financial trouble.
The Kremlin has halted funding for the platform behind Vladimir Putin’s luxury limousine, citing budget constraints.
Funding suspended
The Russian government has suspended financing for the unified EMP modular platform, which underpins the production of Aurus vehicles, according to Rzeczpospolita.
Industry and Trade Minister Anton Alikhanov announced the decision in the State Duma, as reported by Interfax.
Alikhanov said the ministry would redirect resources toward other priorities, including localising key automotive components, particularly for electric and hybrid cars.
The move effectively places the long-promoted project on indefinite hold.
Symbol of sovereignty
The Aurus Senat limousine debuted in May 2018 during Putin’s inauguration and was presented as proof of Russia’s “sovereign” automotive capabilities.
Work on the project began in 2013 at the Moscow Automotive Institute and required substantial state funding. In 2016 alone, 3.7 billion rubles were allocated, following 3.6 billion rubles the previous year.
Despite claims of independence, the vehicle relied heavily on foreign components, and German engineers were involved in its development.
In 2019, efforts to register the Aurus brand in the European Union failed after objections from companies including Toyota, Lamborghini and Michelin.
War impact
The project was intended not only to supply vehicles for top officials but also to enter the commercial luxury market.
From 2021, production moved to a plant in Tatarstan, with plans to manufacture thousands of units annually. Those targets were never met.
The war in Ukraine and the withdrawal of Western companies from Russia further complicated the venture. According to Alikhanov, profitability in the Russian automotive sector has dropped to around 1.2%, while independent analysts report losses.
Sources: Vedomosti, The Moscow Times, Money.pl
