Russia's government has approved a deal for Volkswagen to sell its Russian assets to autodealer group Avilon for up to 125 million euros ($137.6 million), the Interfax news agency reported on Tuesday, citing a source.
Interfax said the source was close to the Russian government commission that monitors foreign investment. The commission's approval is required for asset sales by companies from countries Russia considers "unfriendly" as it labels those that have imposed sanctions against Moscow.
Volkswagen Group Rus, the German carmaker's subsidiary, declined to comment on the value of the deal.
Russia's industry and trade ministry on Monday said the government commission had approved the sale of Volkswagen's main factory in Russia, in the Kaluga region south of Moscow, to Avilon.
Volkswagen opened the Kaluga factory, which has a capacity of 225,000 vehicles a year, in 2007. The plant has been furloughed since March 2022, when sanctions imposed by Western countries over the conflict in Ukraine led supply chains to break down.
Should Volkswagen extract money from Russia while exiting, it would buck the trend of other major automakers, most of which have sold their assets in Russia for a nominal fee, but inserted buyback clauses that could one day allow them to return.
France's Renault sold its majority stake in Russia's Avtovaz for reportedly one rouble, but with a six-year option to buy it back. Japan's Nissan handed over its business in Russia to a state-owned entity for one euro. ($1 = 0.9084 euros) (Reporting by Reuters and Gleb Stolyarov Writing by Alexander Marrow Editing by David Goodman and Barbara Lewis)