Russia’s government has approved the sale of Volkswagen’s factory in the city of Kaluga, the Vedomosti daily reported on Thursday, citing two unnamed sources.
The sale will be a step toward VW finalizing its exit from Russia.
Dealer group Avilon is the buyer, Vedomosti said, backing up previous Russian media reports. Its sources did not know what the transaction value would be.
A source close to the matter told Reuters that no documents had been signed so far. A separate source said the VW-Avilon deal was in the works but provided no further details.
VW did not immediately respond to requests for comment. Russia’s industry and trade ministry and Avilon declined to comment.
Russian exits by Western companies have been complicated as deals involving companies from so-called unfriendly countries — those that imposed sanctions against
Russia — need approval from a government commission. Companies often insert buyback clauses that could one day see them return.
Mercedes-Benz on Wednesday said it had agreed on a buyback option for its Russian assets, the sale of which has now been granted official approval.
VW opened the Kaluga factory, which has a capacity of 225,000 vehicles a year, in 2007. The plant has been furloughed since March 2022, when sanctions imposed by Western countries over the conflict in Ukraine saw supply chains break down.