Mercedes-Benz, a vehicle manufacturer, has announced its decision to sell assets to a local investor as a result of Russia’s invasion of Ukraine. This decision cost Russia the investment of another foreign investor. In response to the invasion of Ukraine, many Western companies have left Russia, and Mercedes-Benz has signed an agreement with Avtodom to bring about the German carmaker’s exit. In response to reports that Ukraine might join NATO—a move that Vladimir Putin’s government opposes—Russia invaded the country in February. Accordingly, Starbucks, Coca-Cola, Uber, eBay, English Oil, Shell, Mcdonald’s, PepsiCo, Adidas, English American Tobacco, Settle, Nike, Unilever, Exxon Mobil among others have left the country.
“Mercedes-Benz intends to sell its shares in Russian subsidiaries to a local investor,” the country’s Industry and Trade Ministry confirmed on Wednesday, adding Mercedes-Benz to a growing list of businesses leaving Russia.
“The new owner of the Russian divisions of Mercedes-Benz, Avtodom, will be able to attract other companies as partners for joint productions,” the ministry said in addition.
Mercedes-Benz’s Overall Overseer of Mercedes-Benz-RUS, Natalya Koroleva said they were closing the arrangement with Avtodom, “The satisfaction of commitments to clients in Russia… as well as the protection of occupations for representatives of the Russian divisions of the organization.”
“The completion of the transaction is subject to the approval of all relevant authorities,” Koroleva explained.