The Federation Council has approved a high-profile law mandating the localization of taxi services in Russia. The legislation now awaits the president’s signature and, if signed, will take effect on March 1, 2026. From that date, only domestically produced vehicles will be permitted to operate as taxis.
The new law amends Federal Law No. 580-FZ on the organization of passenger taxi services, which came into force on September 1, 2023. The initiative was introduced by Andrei Kutepov, Chairman of the Federation Council Committee on Economic Policy, and Vladimir Gutenev, Chairman of the State Duma Committee on Industry and Trade.
The bill passed its first reading in the State Duma in January 2024 but then remained inactive for several months. It faced criticism from business representatives and industry associations, who argued that the proposed requirements would hinder the modernization of taxi fleets and pose challenges for self-employed drivers. As a result, the bill was substantially revised during its second reading.
Localizing taxi fleets could imminently lead to higher ride costs, according to both industry experts and professionals, says Alexey Ivanov, owner of the Alliance Trucks commercial vehicle dealership network.
The reason is straightforward: the current taxi market relies heavily on the access to a diverse range of vehicles, including foreign-made models. If starting in 2026 only domestically produced cars are allowed in taxi services, the available fleet will shrink significantly. This will drive up the cost of fleet renewal for operators, with expenses inevitably to be passed on to passengers, the entrepreneur warns.
“That said, it is important to recognize that the quality of cars manufactured in Russia has improved notably in recent years. Modern Lada models no longer resemble its outdated 2110 series from the 1990s; they’re now quite competitive. Chinese brands assembling vehicles in Russia are also offering a strong balance between price and comfort. So, there’s no need to view the situation too negatively,” Alexey Ivanov believes. “The transition is going to be challenging, but the taxi industry is capable of adapting. The key is to ensure access to appropriate vehicles and develop support measures for operators, especially in regions where the vehicle fleet is in particularly poor condition.”