Volkswagen Exits Russia, Completes Sale Of Russian Operations To Local Dealer

Volkswagen AG VWAGY has completed the sale of its assembly plant and other operations in Russia Art-Finance LLC, which the Russian Dealer Avilon supports.
With the registration of the transaction, ownership of the shares held by Volkswagen Group Rus LLC and its subsidiaries are transferred to the buyer.
The transaction includes the production facilities in Kaluga, the importer structure and the warehousing and financial services activities with all its associated employees.
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The Russian government authorities have approved the transaction.
Though the parties have not disclosed a sales price, Russian media, citing local records, said the deal value was about €125 million ($135 million), reported the Wall Street Journal.
Volkswagen spent €774 million to build the Kaluga plant, which opened in 2007. The plant can produce 225,000 vehicles a year.
After Russia’s Invasion of Ukraine in 2022, Volkswagen halted operations at the plant and in Russia in February.
Volkswagen joins the list of European carmakers like Mercedes-Benz MBGYY and Renault RNLSY to exit the country in the past year.
Price Action: VWAGY shares closed higher by 0.22% at $16.10 on Friday.
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