Volkswagen is "stuck" and cannot leave Russia. Because?

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The Volkswagen Group is a giant no matter how you look at it. His operations are so many that they even go as far as being one of the largest sausage producers in his native country. All in all, focusing on the cars, the German group is present in all the major markets of the world and Russia has always been on target. So much so, that a few years ago they announced that they intended to acquire a part of the Russian GAZ.

Volkswagenwith that purchase wanted to secure control of part of the local market. However, Russia is not a "stable" country when it comes to economic and financial regulation and this has become very clear with the war in Ukraine. In fact now that everything has gone wrong have tried to sell their assets to leave the country and they have been seen "with water up to their necks." Do you know what the reason is? Well, very easy, they have gone from being friends to being hated.

GAZ points out that Volkswagen has unilaterally broken its agreement and for this reason they are asking for 201 million dollars in damages...

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when the invasion of Ukraine by Russia the reactions of the countries and companies were not long in coming. With it also came the paralysis of the Russian economy and economic sanctions. So they had no choice but to leave the country and run. Renault had to sell its stake in Lada to the state for a ridiculous price. Nissan experienced a very similar situation and Mercedes-Benz almost the same.

Well, Volkswagen also announced the cessation of operations and that, in addition, it was also leaving the country. For this, he wanted to group all the assets and put them up for sale, but it seems that his partners at GAZ do not agree with his idea. As we have learned, the Russians would have denounced the Bavarians for breaching the contract since they would have broken it unilaterally. And you will ask, what reason is there for it? Well, it seems that their interests.

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Related article:
Volkswagen Group wants a stake in Russia's GAZ

Apparently GAZ points out that the withdrawal of Volkswagen affects its operations in Russia. To be more exact, Volkswagen signed an agreement to produce vehicles in the center that they have in Nizhny Novgorod. The fact is that it seems that GAZ is not "satisfied" with the breaking of this commitment and they would claim from the Germans for damages about 201 million dollars. And for that they would have resorted to the courts.

In case you didn't know, since the war started, if a foreign company from an "unfriendly" country wants to leave the country, they have to ask the government for permission. They approve, or not, his departure and, furthermore, if they can, or not, sell your assets what is what Volkswagen can't because they are frozen by court order. However, in the Bavarian house they trust that their sale will close shortly and be satisfactory. We will see…

Source - Reuters


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