The scheme will apply to vehicles of six years old or older and will see owners gain a discount of 40,000 roubles (€815) or over.

The Government has set aside 10bn roubles (€204m) for the scheme with the anticipation of subsidising the sale of more than 170,000 vehicles by the end of the year.

Prime Minister Dmitry Medvedev is reported as saying the scheme could 'seriously stimulate sales'.

The scheme comes as car sales plummet in Russia, with the AEB having sharply cut its forecast earlier this summer.

Russia's previous scrappage scheme ran in 2010 and applied to vehicles that were more than 10 years old.