Currently reading: Volkswagen Group to close Russian factory, union says
German car maker blames lack of parts due to sanctions imposed on Russia after its invasion of Ukraine

The Volkswagen Group will close one of its two factories in Russia, a union has said, with the German company blaming a lack of production due to import sanctions.

Citing an announcement to staff made on Tuesday, the Workers' Association trade union said the Nizhny Novgorod factory will close due to a "lack of EU-produced parts, critically important components from Ukraine and lack of domestically made equivalents”, Automotive News Europe reports.  

The European Union imposed sanctions on Russia following its invasion of Ukraine earlier this year. 

Around 200 staff will be affected by the closure, but the bulk of these have already taken voluntary pay-offs, which included medical insurance and a claimed six months' salary.

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