Volkswagen, along with other foreign carmakers, halted operations in Russia last year after Western countries imposed unprecedented sanctions on Moscow over the conflict in Ukraine.
Volkswagen is trying to sell its Russian assets, including its flagship plant in the city of Kaluga with a capacity of 225,000 cars per year, which has been furloughed since March 2022.
Russian automaker GAZ has contracted to produce Volkswagen cars at its Nizhny Novgorod plant, after Volkswagen terminated production as part of a lawsuit against the German automaker, which GAZ says is in breach of contract and seeks to stop any Agreement of sale for August.
In court documents, GAZ said Volkswagen was endangering itself by trying to leave the Russian market, and demanded 15.6 billion rubles ($201.3 million) in damages for canceled contracts.
A Russian court on Monday agreed to freeze all of Volkswagen’s assets in Russia, while the dispute with GAZ continues, with court documents showing a further blow to VW’s attempt to wind down its Russian operations.
Czech automaker Skoda Auto, part of Volkswagen Group, said earlier this week that it was in the final stages of a deal to sell its Russian assets.
Foreign investors fear that Russia may nationalize strategic assets since imposing sales restrictions.
In July last year, President Vladimir Putin issued a decree to take full control of the Sachlain-2 gas and oil project in the Russian Far East, effectively taking over nearly 50% of Russia’s gas and oil projects Shell and two Japanese trading Company’s project.
Other leading Western automakers have withdrawn from the Russian market. Last year, France’s Renault sold its majority stake in Avtovaz to a Russian state entity for a nominal fee of 1 ruble – effectively writing off assets previously worth 2.2 billion euros ($2.35 billion).
Russia’s auto industry is one of the hardest hit by Moscow’s decision to send tens of thousands of troops to Ukraine last February.
The Spaniard scored five points first – a second penalty for a grid error and a second penalty for a mistake – when the rear jack touched the car before five seconds had elapsed.
The second penalty was withdrawn when his team was granted the right to reconsider after presenting new evidence in support of their case.
” Finally, I’m happy with tonight’s result and our second podium. We proved we can be the second fastest team and we had good pace throughout the race, Alonso said in a team statement. Car touched by jack while serving similar sentence… was not penalized.
The steward said the evidence provided an alleged agreement between the teams and the FIA questioned that “touching the car in any way, including a jack, would constitute ‘work’ on the car. ’ criticized him for taking more than 30 laps into the pit to issue the second penalty, then said.
“You can’t issue a penalty 35 laps into the pit. They have plenty of time to actually inform the punishment. If I’d known this, I’d probably have opened up 11 seconds to the person behind me. Today I think we didn’t put on a good show for our fans.
“They only told me five seconds in the first period and I opened seven or eight. Then in the second there was no information. Not even an investigation.”
The reversal meant Mercedes driver George La Sale dropped to fourth after showing up in third in the post-race press conference.
“Fernando’s penalty was tough. You deserved to be on the podium today, but I’ll take an extra trophy,” he said before.