After months of negotiations with Russian authorities, Volkswagen (VOWG_p.DE) sold its Kaluga production plant and local companies on Friday.
VW said VW sold its Volkswagen Group Rus LLC shares to Art-Finance LLC, financed by auto dealer group Avalon.
The statement stated that the purchase comprises the Kaluga production facilities, the importer structure with distribution and after-sales business, and the warehousing and financial services activities with all workers.
The group did not disclose pricing. However, a source assessed the sale at 125 million euros ($138 million).
Since March 2022, Russia’s invasion of Ukraine has forced Western nations to penalize Moscow, disrupting supply routes and shutting down the Kaluga plant south of Moscow.
Over 4,000 workers produce 225,000 automobiles a year.
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