German car manufacturer Volkswagen has decided to definitively abandon its Russian plant in Nizhny Novgorod, which has been operating for almost a decade in alliance with its local partner Gaz Group. Specifically, the firm has contacted the 200 workers at the plant and has offered to voluntarily leave their jobs in exchange for six months’ salary.
Production at the factory has been stopped since March and it will probably not recover in the short term because the European Union decided to sanction Oleg Deripaskaone of the owners of Volkswagen’s Russian partner.
According to the representative unions at the plant, according to ‘Kommersant’, Volkswagen offers the full six salaries to workers who accept voluntary redundancy before June 17. For those who wait until June 29, the compensation will be only five salaries.
According to the Russian newspaper, the Wolfsburg-based company has also informed its partners that there will be no local production in Russia during 2022. This includes the company’s own plant in Kaluga, which employs around 4.000 personas.
Renault sells its business in Russia
Renault Group has also unanimously approved the signing of agreements for the sale of 100% of the Renault Group’s shares in Renault Russia to the city of Moscow and its 67.69% stake in Avtovaz to the Central Automobile and Engine Research and Development Institute (NAMI). The performance of these operations is not subject to any conditions and all the required authorizations have been obtained.
The French group suspended all its industrial activity in Russia after the invasion of Ukraine last March in accordance with international sanctions imposed by the West. Since then, the French consortium was studying the possible options regarding its participation in the Russian manufacturer, taking into account the 45,000 employees that you have in the country.
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