Volkswagen Shutters Russian Auto Factory Due To Sanctions

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.