Russian court fines Volkswagen $191.5M

MOSCOW: A Russian court has fined German automotive firm Volkswagen 16.9 billion rubles (about $191.5 million) in a lawsuit brought by Russian firm GAZ.

A court in the Nizhny Novgorod province ruled on Tuesday that Volkswagen had caused material damage to GAZ.

GAZ accused Volkswagen of failing to fulfill its obligations for production and parts deliveries under ongoing contracts and unilaterally terminating some others.

Amid Western countries’ sanctions on Russia and discouraging doing business with Moscow over the ongoing war on Ukraine, Volkswagen announced its withdrawal from the country in May 2023 and selling its assets in Russia to a local firm

Russian Trade Minister Anton Alihanov announced on Monday that mass car production had started at Volkswagen’s former plant in Kaluga.

Source: Anadolu Agency