Mercedes-Benz pulls out of Russian market amidst ongoing Ukraine-Russia war: Report

After Nissan, Ford and GM announced to shut their operations in Russia amidst the ongoing conflict between Ukraine and Russia, now Mercedes-Benz has decided to move out of the Russian market.

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Amidst the ongoing Ukraine-Russia war, German automaker Mercedes-Benz said on Wednesday said it would withdraw from the Russian market. The automaker has become the latest in the round of large businesses announcing their exit from the Russia due to ongoing conflict between Ukraine and Russia. Earlier Nissan, Ford and GM announced to shut their operations in Russia to support Ukraine.

As per a report on Reuters, Mercedes-Benz said that they will sell shares in its industrial and financial services subsidiaries to a local investor.

However, a Mercedes spokesperson told Reuters that the company's stake in Russian truckmaker Kamaz would not be affected by the intended transaction and should be transferred to Daimler Truck this year as planned.

Mercedes-Benz to sell shares in Russian subsidiaries to local investor https://t.co/HmPo0YnLpt pic.twitter.com/GwNiQfO1CP — Reuters (@Reuters) October 26, 2022

Earlier this month, Japan's Nissan Motor Company decided to sell its Russian operations with an option to buy it back within six years. Nissan had suspended its Russian operations following Russian military operations in Ukraine and the sanctions imposed by the West.

The company stated it will take a one-off impact of approximately 100 billion yen from this exit. According to Nissan, its Executive Committee approved the sale of its Russian operations to NAMI, the Central Research and Development Automobile and Engine Institute. The sale will transfer all Nissan operations in Russia under the Nissan Manufacturing Russia LLC (NMGR) legal entity to NAMI for future passenger vehicle projects, Nissan stated.

With agencies inputs