Mercedes is the recent Western corporation to leave Russia in the wake of the invasion of Ukraine.
Early in March, the German company halted producing in and importing from the nation.
However, it has now announced that it will leave the Russian market and sell stock in its subsidiaries to a regional investor.
Ford announced on Wednesday that an agreement to leave the Russian market had also been finalized.
In March, the company had said that all of its operations in Russia would be suspended. Although it has the option to buy the shares back within five years “should the global circumstances alter,” it has now sold its 49% ownership in the Sollers-Ford joint venture.
Nissan, a Japanese company, left Russia earlier this month after Toyota and Renault did the same.
Nissan handed over its business to a state-owned organization for a small amount, reportedly less than £1, at a loss of $700 million (£600 million).
Mercedes’ exit from Russia is not anticipated to have a materially negative net impact on the company’s profitability, according to Harald Wilhelm, the company’s chief financial officer.
The choice was made after major Western businesses, including Starbucks, McDonald’s, and Coca-Cola, left Russia earlier this year.
In the early months of the conflict, other vehicle companies, including Jaguar Land Rover, General Motors, Aston Martin, and Rolls-Royce, all ceased deliveries to the country.
Mercedes, according to James Baggott, editor-in-chief of industry website Car Dealer Magazine, was in pace with other corporations when it halted exports and suspended operations in Russia early this year, but many other carmakers rapidly departed from the nation.
- A growing number of companies are withdrawing from Russia.
- McDonald’s will depart Russia permanently after 30 years.
- Starbucks will leave Russia but will pay six months’ salaries.
He told the BBC that Mercedes’ failure to follow was unusual.
“Prior to the war, Russia had a rich market for luxury car manufacturers like Mercedes, with models like its G Wagen off-roader and S Class particularly popular with its elite,” he explained.
“Perhaps Mercedes hoped for a quick conclusion to the war, and now that that appears improbable, the company has finally made the long-overdue decision to leave the nation for good.”
Mercedes-Benz in Russia CEO Natalia Koroleva stated in a statement that the key considerations in the relocation were to fulfill promises to Russian clients and to keep jobs in Russia.
According to the Association of European Businesses (AEB), Mercedes sold 9,558 vehicles in Russia from January to September, a 72.8% decrease from the previous year.
