Russian Court Freezes Volkswagen Assets

A Russian court has frozen all of Volkswagen's assets in the country, marking the latest obstacle in the German automaker's efforts to reduce its operations in Russia, an endeavor that has been ongoing for a year. Volkswagen and other foreign car manufacturers suspended their operations in Russia last year after unprecedented sanctions were imposed on Moscow by Western countries due to the conflict in Ukraine. Volkswagen is attempting to sell its Russian assets, which include its main plant in Kaluga with an annual production capacity of 225,000 vehicles. These efforts have been halted since March 2022. The Russian automaker "GAZ," which was contracted to produce Volkswagen vehicles at its plant in Nizhny Novgorod, sought to block any sale through a lawsuit after Volkswagen terminated the production agreement in August. GAZ stated in court documents that Volkswagen's attempts to exit the Russian market jeopardize its interests and is seeking 15.6 billion rubles (201.3 million dollars) in compensation for the terminated contract.