Mercedes-Benz has recently formalized the sale of its financial services company in Russia: the company was sold to Russian retailer Avtodom following the approval of Russian President Vladimir Putin, according to reports Reuters .
The German company halted all production lines located in Russia following the conflict in Ukraine and last year it also halted the export of luxury vehicles, despite Russia being a country with a good portion of the population that may have ample economic means and is passionate about the G-Class. Last October Mercedes definitively abandoned – or at least, until it is decided that it is worth returning – the Russian territory and its market.
To complete the detachment, however, Putin's approval is needed, which according to Russian law must authorize the sale of shares in legal companies to the financial or energy world: after Putin's approval, it must go through a government commission which has the task of approving agreements concerning "hostile" nations, i.e. those that have imposed sanctions against Russia - to date this means a large part of the nations of the whole world.
Buyer Avtodom specializes in the sale of luxury vehicles and will take control of Mercedes-Benz Bank Rus and hopes to also take control of a Mercedes factory near Moscow, so as to restart car production; In recent months, the Russian automotive market has experienced great difficulties due to sanctions and the interruption of some supply chains, but despite everything, cars continue to be produced in Russia which, however, fail to reach the safety standards required in Europe.
Mercedes is only the latest on the list of companies to leave the Russian market, with other automotive brands they've already been out for a while, like Nissan and Hyundai. Perhaps the most striking case is that of Mazda, which has signed an agreement to sell its 50% stake in Mazda-Sollers Manufacturing Russia for $1, with a clause that will allow it to buy back the shares for the same amount if and when things in Russia will have calmed down.