MOSCOW (Pakistan Point News / Sputnik - 11th July, 2022) German carmaker Mercedes-Benz is considering selling the property of its distributor in Russia to one of its dealers, including Panavto, Avtodom, Avilon and Major Auto, Russian business newspaper Kommersant reported on Monday, citing sources close to the matter.
Given that the company has not yet sold its automobile warehouse in Russia, fearing sanctions, the dealer is likely to obtain the rights of a Mercedes distributor in the Russian market, one of the sources told the newspaper. According to another source, Mercedes-Benz Russia is considering selling its car warehouse and dealership through a bidding.
The Mercedes-Benz plant in the village of Esipovo in the Moscow Region is not included in the deal, though the facility is not operating anyway, just like the majority of foreign automotive plants in Russia. If the deal goes ahead, Mercedes-Benz will stop its direct work in Russia.
Meanwhile, the company told Kommersant it was considering various "future plans and strategic decisions" for doing business in Russia, but declined to provide details and said that no specific decisions have been made yet.
In early March, Mercedes-Benz announced the suspension of car production at its plant in Esipovo and the cessation of supplies of its passenger cars and light commercial vehicles to the Russian market.
On February 24, Russia began a military operation in Ukraine after calls for help from the breakaway republics of Donetsk and Luhansk. This prompted a slew of foreign sanctions and many foreign companies chose to leave the Russian market.
