The Swedish car manufacturer says that the measure is not a boycott of the country
Swedish truck manufacturer AB Volvo has stopped all production and sales in Russia due to sanctions against Moscow’s military operation in Ukraine, the company announced on Monday.
Press spokesman Klaas Eliasson told SVT that the company does not “have conditions for work in Russia, taking into account the sanctions imposed”. He noted that “there is no boycott of Russia as a nation.”
The measure takes effect immediately and applies to all deliveries of materials and components to Russia. The decision to stop production in Russia comes after one of AB Volvo’s large component subcontractors, Nordiq, last week decided to stop deliveries to the country.
The Volvo Group generates approximately 3% of its sales in Russia and has a factory in the country.
On Monday, German carmaker Volkswagen temporarily halted deliveries of cars already in Russia to local dealers, media reported, citing the company’s statement. The carmaker also had to suspend production at two of its German factories this week due to delays in deliveries of parts from Ukraine.
At the same time, Russian media report that at least 20 carmakers have raised car prices in the country in February – eight of them in the past week, following the fall of the Russian ruble in the face of sanctions against Ukraine. The price increase affected Citroen, Mazda, Hyundai, Infiniti, Opel, Peugeot, Renault and Mercedes-Benz. The head of the analysis agency Avtostat, Sergey Tselikov, recently warned that a number of brands would soon disappear completely from Russia, while “the car market will be reoriented towards China and Korea.”
For more stories on economics and finance visit RT’s business section