Volkswagen assets frozen by Russian court after carmaker fails to find buyer

A Russian court on Monday froze all Volkswagen assets in Russia, in the latest obstacle to the German carmaker's year-long efforts to wind down its Russian operations. Volkswagen, along with other foreign carmakers, suspended operations in Russia last year after western countries imposed unprecedented sanctions on Moscow over the conflict in Ukraine. Volkswagen has been trying to sell its Russian assets, including its flagship plant in the city of Kaluga, which has production capacity of 225,000 vehicles a year and has been furloughed since March 2022.

By: Reuters
| Updated on: 20 Mar 2023, 16:21 PM
Follow us on:
Follow us on:
Volkswagen cars seen parked at the plant of Volkswagen Group Rus in Kaluga. (File Photo) (REUTERS)
Volkswagen cars seen parked at the plant of Volkswagen Group Rus in Kaluga. (File Photo)

Russian auto manufacturer GAZ, which was contracted to produce Volkswagen vehicles at its factory in Nizhny Novgorod, sought to halt to any sale as part of a lawsuit against the German carmaker for what GAZ says is a breach of contract after Volkswagen terminated the production agreement in August.

In court filings, GAZ said Volkswagen's attempts to exit the Russian market put its own interests at risk and it is seeking 15.6 billion roubles ($201.3 million) in damages over the terminated contract.

Also check these Cars

Find more Cars
Volkswagen Taigun (HT Auto photo)
₹10.49 - 17.5 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Explore your Vehicle
Volkswagen Virtus (HT Auto photo)
999 cc | Petrol | Manual | 19.4 kmpl
₹11.21 - 17.91 Lakh**Ex-showroom price
Add to compare
Check latest offers
Volkswagen Id.4 (HT Auto photo)
₹50 - 60 Lakhs* *Expected Price
View Details
Volkswagen Tiguan (HT Auto photo)
₹32.79 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Skoda Kushaq (HT Auto photo)
₹10.5 - 17.6 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Hyundai Verna (HT Auto photo)
₹10.89 - 17.38 Lakhs**Ex-showroom price
Add to compare
Check latest offers

A Russian court on Monday agreed to freeze all of Volkswagen's assets in Russia while the dispute with GAZ plays out, court documents showed, further hitting VW's attempts to wind down its Russian operations.

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

Earlier this week, Czech carmaker Skoda Auto, part of the Volkswagen Group, said it was is in the final stages of a deal to sell its Russian assets.


Russia mandates that companies from "unfriendly" countries - those which have hit Russia with sanctions - are required to win approval from a government commission for the sale of any Russian assets.

Foreign investors have feared Russia could move to nationalise strategic assets since the restrictions on sales were brought in.

Last July President Vladimir Putin issued a decree to seize full control of the Sakhlain-2 gas and oil project in Russia's far east, effectively taking almost 50% of the project from Shell and two Japanese trading companies.

Other leading Western carmakers have left the Russian market. Last year France's Renault sold its majority stake in Avtovaz to a Russian state entity for a symbolic fee of one rouble - effectively writing off assets it previously valued at 2.2 billion euros ($2.35 billion).

Russia's auto industry has been one of the worst hit by Moscow's decision to send tens of thousands of troops into Ukraine in February last year.

Previously reliant on Western investment, equipment and parts, car production last year fell by an unprecedented 67% to its lowest level since the collapse of the Soviet Union.

First Published Date: 20 Mar 2023, 16:21 PM IST
Recommended for you
View all
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
13% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 349 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
14% OFF
Jopasu Car Duster
Rs. 749 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city