German carmaker Volkswagen mentioned Friday it had accomplished the sale of its Russian property to native dealership group Avilon, as a part of its exit from the nation following Moscow’s invasion of Ukraine.
The sale contains the flagship Kaluga manufacturing unit southwest of Moscow, which employs round 4,000 folks and has a capability to construct 225,000 automobiles per 12 months.
“The brand new proprietor will purchase all shares within the Russian subsidiaries,” VW group mentioned in an announcement.
“The deal has been authorised by the Russian authorities authorities,” it added.
Like different main automobile corporations, Volkswagen halted its operations in Russia final 12 months after Moscow’s invasion of Ukraine triggered heavy Western sanctions that disrupted provide chains.
However VW needed to anticipate the sign-off from the Russian authorities earlier than it may full its departure from the nation.
The sale of property by corporations from “unfriendly nations,” as Moscow calls those who have imposed sanctions on it, require approval from a authorities fee that displays international funding.
VW didn’t disclose any monetary particulars of the transaction.
However Germany’s Handelsblatt monetary newspaper mentioned the carmaker would obtain round 125 million euros ($135 million) from the sale – effectively under the precise worth of VW’s Russian property.
“All actions are bought so we aren’t current in Russia anymore,” a VW spokesman advised AFP.
The conflict in Ukraine has sparked an exodus of international corporations from Russia, together with Starbucks, McDonald’s and H&M.
Japanese carmaker Nissan bought its property within the nation to the Russian authorities final 12 months.
French automaker Renault additionally handed over its Russian property to Moscow for a symbolic one ruble.