The automaker suspended business in Russia due to sanctions and entered into legal proceedings for the termination of the contract with GAZ.
A Russian court on Monday, March 20, froze all of Volkswagen’s assets in Russia. This was reported by Reuters, citing court documents.
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It noted that Volkswagen was one of the foreign car companies that suspended its activities in Russia after the West imposed unprecedented sanctions on Moscow over the war in Ukraine.
Russian automaker GAZ, which under contract built Volkswagen cars at a plant in Nizhny Novgorod, filed the lawsuit after Volkswagen terminated the agreement in August.
GAZ estimates losses at about 16 billion rubles ($207.79 million).
The agency recalled that Volkswagen was trying to sell its flagship in Kaluga. The facility with a capacity of 225,000 vehicles per year will be closed from March 2022.
Volkswagen has banned Chinese factories from selling cars in Russia
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.