Volvo Automobiles stated on Monday that it could cease promoting autos in Russia due to sanctions imposed by america and European Union, and since doing enterprise there had grow to be too dangerous after the invasion of Ukraine.
The choice by the Swedish carmaker, which is owned by Zhejiang Geely Holding of China, is an instance of how companies might abandon the comparatively small Russian market as worldwide tensions skyrocket after the invasion of Ukraine.
Volvo Automobiles, which is a separate firm from Volvo Vans, offered 9,300 autos in Russia final yr, or about 1 p.c of the automaker’s worldwide complete. With an economic system smaller than New York State’s, Russia is a market that many enterprise might resolve they’ll do with out in gentle of rising dangers.
“Contemplating the potential dangers related to buying and selling materials with Russia,” Volvo stated in an announcement Monday, “together with the sanctions imposed by the E.U. and U.S., Volvo Automobiles is not going to ship any vehicles to the Russian market till additional discover.”
The corporate’s resolution can also be noteworthy as a result of it’s owned by a Chinese language conglomerate. President Xi Jinping of China has been one of many few world leaders to keep up shut political and economic ties with Russia and its president, Vladimir V. Putin, whereas opposing U.S. and E.U. sanctions that had been put in place in response to the invasion.