Volvo Cars Halts Sales to Russia, Citing Ukraine Sanctions
Volvo Cars said on Monday that it would stop selling vehicles in Russia because of sanctions imposed by the United States and European Union, and because doing business there had become too risky after the invasion of Ukraine.
The decision by the Swedish carmaker, which is owned by Zhejiang Geely Holding of China, is an example of how businesses may abandon the relatively small Russian market as international tensions skyrocket after the invasion of Ukraine.
Volvo Cars, which is a separate company from Volvo Trucks, sold 9,300 vehicles in Russia last year, or about 1 percent of the automaker’s worldwide total. With an economy smaller than New York State’s, Russia is a market that many business may decide they can do without in light of growing risks.
“Considering the potential risks associated with trading material with Russia,” Volvo said in a statement Monday, “including the sanctions imposed by the E.U. and U.S., Volvo Cars will not deliver any cars to the Russian market until further notice.”
The company’s decision is also noteworthy because it is owned by a Chinese conglomerate. President Xi Jinping of China has been one of the few world leaders to maintain close political and economic ties with Russia and its president, Vladimir V. Putin, while opposing U.S. and E.U. sanctions that were put in place in response to the invasion.
