The German carmaker Mercedes-Benz is likely to sell its Russian assets to a local investor. The Russian Industry and Trade Ministry have made the following announcement on Wednesday. It became the recent automaker to exit since Moscow deployed its army in Ukraine.
Avtodom, the ministry added in a statement that, “Mercedes-Benz is intending to sell its stakes in Russian subsidiaries to a local investor.”
The ministry mentioned that, “The latest owner of the Moscow divisions of Mercedes-Benz, Avtodom, is likely to be able to attract other firms as partners for joint productions.”
Mercedes-Benz has made a confirmation that it is intending to sell in another statement.
Meanwhile, general director of Mercedez-Benz-RUS Natalya Koroleva said that, “The fulfilment of obligations to consumers in Russia, along with the preservation of jobs for employees of the Moscow division of the firm were the priority in finalizing the deal with Avtodom.”
In a statement issued, Mercedez-Benz added that, “The fulfillment of the transaction is subject to the consent of all relevant authorities.”
Several Western firms left Russia for ethical or logistical reasons since Russia called for what it calls a “special military operation” in Ukraine on Feb. 24.
No financial information of the transaction were provided by either side on Wednesday.
Western sanctions imposed on Moscow since the beginning of the Ukraine offensive have heavily disrupted supply chains.
The technology and car manufacturing sectors were particularly affected.