Russia's GAZ Group files $348 million suit against Volkswagen

April 10, 2023 03:38 PM MSK | By Reuters
Image source: Reuters

MOSCOW (Reuters) - The Gorky Automobile Plant, part of Russia's GAZ Group which was contracted to assemble cars for Volkswagen, has filed a lawsuit to recover 28.4 billion roubles ($348 million) from the German automaker, court records show.

The lawsuit, details of which have not yet been published, was filed with the Nizhny Novgorod regional court on April 7. Volkswagen declined to comment.

GAZ Group is already seeking to recover 15.6 billion roubles from its former partner in a separate suit. Volkswagen halted operations in Russia in March 2022, shortly after Moscow ordered tens of thousands of troops into Ukraine.

A court froze the company's assets in Russia on March 17, but that order was lifted on April 3. Volkswagen plans to sell its Russian assets including a car plant in Kaluga with a capacity of 225,000 vehicles a year, but has not yet made a decision on the disposal.

It is in the process of applying for approval of the sale by Russian government agencies, the automaker has said. Volkswagen plants in Kaluga and Nizhny Novgorod ceased production in March last year after the company announced the suspension of operations in Russia until further notice. In the summer the company decided to close the Nizhny Novgorod site.

($1 = 81.6500 roubles)

(Reporting by Reuters; Editing by Jan Harvey)

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