Volkswagen has sold its assembly plant and other operations in Russia to a local auto dealership, more than a year after the German carmaker ceased production in the country following the invasion of Ukraine, the company said on Friday.
Under the deal, which required approval from the Russian government, a Moscow-based dealership called Avilon acquired the assets of Volkswagen Group Rus, the carmaker said. Neither company specified a sales price, but Russia media, citing local records, said Avilon had paid about 125 million euros ($135 million).
Volkswagen made the announcement in a terse statement, and declined to comment further on the deal.
The move makes Volkswagen the latest European carmaker to withdraw from Russia in the past year, joining several hundred other multinational corporations leaving a market where many spent decades currying and constructing. But outrage over Moscow’s war in Ukraine, combined with the difficulties coping with tough economic sanctions aimed at punishing Russia, has made the Russian market less attractive.
Mercedes-Benz announced last month that it had sold its Russia division, including an assembly plant, to Avtodom, a Russian investor, roughly a year after it suspended local manufacturing and the export of passenger cars and vans to Russia. The sale included a limited repurchase option, the company said, but it did not give any further details.