Volkswagen has commenced operations at its engine plant in Russia. The factory, adjacent to the company's vehicle assembly plant in Kaluga, has an annual production capacity of 150,000 engines.

Engines for Skoda Rapid and VW Polo models will be built at the plant. Skoda Yeti, Oktavia and VW Jetta engines will follow, Reuters reported.

Volkswagen board member Thomas Schmall said: "We need to continue and strengthen our partnership (in Russia) despite the current situation. We are doing everything in our power to strengthen our market position in the long term."