Mercedes-Benz leaves Russia and sells its plant

German Mercedes-Benz is leaving the Russian market. The auto concern is selling property, stakes in local subsidiaries and its factory in the Moscow suburbs to the Russian dealer Avtodom.

"Kommersant" and a number of Russian mass media write about it with reference to sources and the companyʼs statement.

The concern valued its assets in Russia at €2 billion, but analysts refer to the practice of selling factories for rubles in the current conditions. The new owner will probably develop the production of Chinese cars.

Mercedes-Benz has become the third car manufacturer in the passenger segment to withdraw from Russia due to sanctions. Before that, Renault and Nissan left the Russian market.

• Sanctions prohibit the supply of cars from the EU to Russia costing more than €50 000. American sanctions generally prohibit the supply of cars to the Russian Federation. In addition, sanctions make it impossible to supply components to Russia.
• Last year, the Mercedes concern increased sales in Russia by 11%, up to 43 000 cars. According to the results of nine months of the current year, they decreased by 73% — to 9 100 cars.