Illuminated VW logo of German carmaker Volkswagen at the company’s headquarters in Wolfsburg, northern Germany, on September 9, 2019 (dpa/AFP/Julian Stratenschulte)
German car giant Volkswagen has completed the sale of all of its assets in Russia, including its Kaluga plant, to local investor, Russian dealership Avilon, the group announced on Friday.
“The new owner will acquire all the shares of the Russian subsidiaries. The operation has been approved by the Russian government authorities”, indicates a press release from Volkswagen which does not specify the amount of the transaction.
Like the other car manufacturers present in Russia, the group had suspended local production after the invasion of Ukraine in connection with the Western sanctions taken against Moscow.
According to the German daily Handelsblatt, Volkswagen will receive around 125 million euros from the sale, a sum well below the real value of the Russian assets.
Other manufacturers have had to sell their assets to the Russian state, such as Nissan or Toyota. Renault, one of the most exposed foreign groups in Russia, sold its shares to the public company NAMI.
Russia accounted for 2.4% of Volkswagen sales in 2020.
The Kaluga plant, south-west of Moscow, which notably manufactured Tiguans and Polos, had an annual production capacity of 225,000 vehicles.
The sale was delayed by a lawsuit brought by Volkswagen’s former partner in Russia, Gaz, which had sought damages from it for having terminated the agreement to produce its vehicles.
But a Russian court dismissed Gaz’s claims last month.
In addition, the group was waiting for the validation of the transaction by the Russian government, while the sales of assets of countries at the origin of the sanctions against Russia since the war are subject to its approval.
“All our activities are sold, so we are no longer present in Russia,” a Volkswagen spokesman told AFP on Friday.
In addition to the sale of the plant, the transaction includes “the import structure, storage and financial services activities,” the statement said.
German competitor Mercedes-Benz had already announced the sale of its assets in Russia to another local investor last October.
© 2023 AFP
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