Many brands have sold their assets since 2022 but retained a buyback option
Western car brands that quit the Russian market following the outbreak of the Ukraine conflict are unlikely to be able to return in the future despite retaining buyback options, First Deputy Prime Minister Denis Manturov has said.
Germany’s Mercedes, France’s Renault, and Japan’s Nissan left Russia in 2022 after the US, the EU, and their allies launched an unprecedented sanctions campaign against Moscow. Their assets were sold to Russian companies or transferred to the government, but the contracts included a buyback clause, which gives the firm the right to return to the country and reclaim its business in the future.
However, their places have already been taken by other manufacturers, according to Manturov, who previously served as minister of industry and trade.
“The carmakers simply ran away, slamming the door. Yes, they do have buyback options but I very much doubt that a return is realistic and feasible. The [firms] that have replaced them have offered… much more favorable terms,” he said in an interview published in Vedomosti newspaper on Tuesday.
Manturov spoke to the outlet following last week’s Eastern Economic Forum (EEF) in Vladivostok, which hosted high-profile delegations from countries including China and India.
China has become the largest foreign supplier of cars to Russia in the past two years. Chinese car brands Chery, Haval, Geely, Changan, Exeed, and Omoda entered the Russian market, replacing European, Japanese, and Korean firms.
Forbes magazine recently ranked Chery as the largest foreign company in Russia by revenue in 2023. According to the analytics agency Autostat, Chery was the second-best-selling automobile brand in Russia last year after the Russian Lada, boasting an 11% share of the market.
Previously, EU carmakers topped the Forbes list, with German conglomerate Volkswagen Group coming first in 2022, and France’s Renault at the top in 2020.
