Court freezes Volkswagen assets in Russia

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1 年前

STORY: A Russian court froze all Volkswagen assets in the country on Monday (March 20).

It presents the latest issue for the German carmaker in its year-long effort to wind down its Russian operations.

VW suspended operations there last year after the invasion of Ukraine.

The carmaker has tried to sell its Russian assets, including its main plant in the city of Kaluga.

But a lawsuit was brought against VW by Russian auto manufacturer GAZ.

The firm was contracted to produce VW vehicles and tried to stop any sale.

GAZ argued VW breached a contract after it ended their production agreement in August.

The Russian firm further said VW's attempts to leave the country put its own interests at risk, and demanded over $201 million in damages.

The court on Monday agreed to freeze all VW's assets in the country while the dispute with GAZ played out.

The Russian carmaker declined to comment.

Volkswagen and Russia's industry ministry did not respond to requests to comment.