VW says no decision made yet on sale of Russian plant

Volkswagen  and Russia's industry ministry said no decision had yet been made on the sale of the automaker's Kaluga car plant south of Moscow, after a report that dealer group Avilon was set to buy the factory.

The Moscow-based RBC daily newspaper reported on Wednesday that Avilon was set to buy the factory, citing two unidentified sources.

VW said it was considering various scenarios, including the option of selling Volkswagen Group Russia's assets to a third party, but that a decision had not yet been made.

The Russian Ministry of Industry and Trade said the final decision "is at the stage of formation."

The RBC newspaper cited one source as saying the deal was already agreed, and would be finalized on March 3, the date of the carmaker's supervisory board meeting.

A source close to the matter told Reuters there are two contenders to purchase the plant -- Avilon and Russian conglomerate AFK Sistema, which Kommersant reported last month was also considering buying the asset.

Avilon did not respond to requests for comment.

VW opened the Kaluga factory, which has capacity of 225,000 vehicles a year, in 2007.

The plant has been furloughed since March 2022, when sanctions imposed by Western countries over the conflict in Ukraine caused supply chains break down.

A string of Western car brands have quit the Russian market in the year since Moscow sent troops into Ukraine, either suspending production or selling their assets in the country to local buyers.

Renault transferred its 68 percent stake in Russia's biggest carmaker, AvtoVAZ, to an auto research institute for one symbolic ruble. Renault's factory in Moscow was passed to the city's government. Renault has the right to buy back its AvtoVAZ stake within five to six years from NAMI.

Nissan transfered its shares in Nissan Manufacturing Russia to NAMI for 1 euro. The deal gave Nissan the right to buy back the business within six years. The sale included Nissan's car plant and research facilities in St. Petersburg as well as its sales and marketing center in Moscow.