Russia feels the pinch in September as chips shortage continues

Some international cars and truck makers, including Volvo Cars and Daimler Truck, on Monday suspended some business in Russia following that country’s invasion of Ukraine, Reuters reported.

Volvo Cars told the automaker it would suspend car shipments to the Russian market until further notice, becoming the first international automaker to do so as sanctions over the invasion continue to bite.

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In a statement, the company said it had made the decision because of “potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US.”

“Volvo Cars will not deliver any cars to the Russian market until further notice,” it said.

A Volvo spokesman told Reuters the carmaker exports vehicles to Russia from plants in Sweden, China and the US.

Volvo sold around 9,000 cars in Russia in 2021, based on industry data, the report said.

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Earlier on Monday, according to Reuters, the RIA news agency, citing a company statement, reported Volkswagen had temporarily suspended deliveries of cars already in Russia to local dealerships. VW had no immediate comment when contacted by Reuters.

VW has previously said it would halt production for a few days this week at two German factories after a delay in getting parts made in Ukraine.

Daimler Truck said on Monday it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz.

Mercedes-Benz Group was also looking into legal options to divest its 15% stake in Kamaz as quickly as possible, the Handelsblatt newspaper reported, according to the news agency.

A Mercedes spokesperson told Reuters business activities would have to be re-evaluated in light of the current events.

Truck maker AB Volvo said it had halted all production and sales in Russia due to the crisis. It generates about 3% of its sales in Russia and has a factory there.

“We now have a bit more clarity on sanctions and security in the region … this means all operations in Russia end,” a company spokesperson told Reuters, adding the measures would apply until further notice.