The Ukraine conflict has created a jobs crisis in Russia, and more and more companies flee the country as Western sanctions due to the war take hold. Now Volkswagen has announced it is offering a series of compensations to employees who voluntarily quit their jobs at the Nizhny Novgorod car assembly plant.
The factory in question, located in Nizhny Novgorod, Russia, is owned by the GAZ Group, the leading vehicle manufacturer in the country with 18 manufacturing facilities in eight regions of Russia. Oleg Deripaska, one of its co-owners, has been placed under sanctions by Western countries.
And although, initially, a temporary exemption allowed operations to continue at the factory, this was not extended. As a result, Volkswagen announced in March that production at both Kaluga and Nizhny Novgorod plants would be suspended until further notice. At the same time, vehicle exports to Russia stopped effective immediately.
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