Mercedes-Benz to sell assets to local investor in Russia

Mercedes-Benz to sell assets to local investor in Russia

UPDATE DAY

The German car group Mercedes-Benz will sell its assets in Russia to a local investor, the Russian Ministry of Industry and Trade announced on Wednesday, amid an offensive in Ukraine and sanctions Western countries. 

“Mercedes-Benz will sell its shares in its Russian subsidiaries to a local investor”, the Russian company AVTODOM, the ministry said in a press release.

“The new owner of the Russian subsidiaries of Mercedes-Benz, the company AVTODOM, will be able to attract other companies as partners to organize joint production” of cars at the Mercedes plant in Yessipovo, inaugurated in 2019 and located about fifty kilometers from Moscow, according to the same source.

“Mercedes-Benz will leave the Russian market”, confirmed the German group in a press release.

Among the “ main priorities” of Mercedes-Benz when concluding the agreement with AVTODOM included in particular the maintenance in jobs in Russian subsidiaries, said the general director of Mercedes-Benz-RUS, Natalia Koroliova, quoted in the press release of the automaker.

After the outbreak of the Russian offensive in Ukraine on 24 February and the introduction of economic sanctions, many large Western companies and brands left Russia, for ethical reasons or because of the difficulties of continuing their activities there.