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

Posted On: Apr. 10, 2023 11:39 AM CST


(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 rubles ($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 rubles 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.

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.