Russian GAZ Group seeks to recover $350 million from Volkswagen in court
Volkswagen plans to sell its Russian assets, including the Kaluga car plant
The Gorky Automobile Plant, part of the Russian GAZ Group, is seeking to recover 28.4 billion rubles ($350 million) from the German automaker Volkswagen in court, according to the arbitration file.
Source. This was reported by Reuters.
The lawsuit, the details of which are not given in the file, was filed with the court of the Nizhny Novgorod region of Russia on April 7.
Earlier, GAZ Group, which under the contract provided Volkswagen with a production site for assembling its cars, demanded to recover 15.6 billion rubles from its former partner. The court seized the company's assets in Russia on March 17, but the arrest was lifted on April 3.
Volkswagen is planning to sell its Russian assets, including its 225,000-car-per-year Kaluga plant, but has not yet made a decision and is in the process of applying for approval by Russian government agencies, the automaker said.
In March last year, Volkswagen's plants in Kaluga and Nizhny Novgorod ceased production after the group announced that it would suspend operations in Russia until further notice. In the summer, the company decided to close the Nizhny Novgorod site.
Background. As reported, the court arrested all Volkswagen's assets in Russia at the suit filed by GAZ Group. The plaintiff also claims damages in the amount of $201.3 million.
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