LONDON – Mercedes-Benz has 2 billion euros ($2.2 billion) in belongings that might be threatened by Russian proposals to nationalize the property of international corporations that go away due to its invasion of Ukraine, the German premium carmaker stated.
The corporate stated in its annual report launched on Friday that the conflict in Ukraine raised a variety of dangers from disruptions to components to vitality provide and even cyber assaults.
“These dangers might be exacerbated by the potential expropriation of belongings of Russian subsidiaries,” Mercedes-Benz stated.
Russia’s ruling celebration, United Russia, stated this week a authorities fee had authorized step one in the direction of nationalizing the belongings of corporations greater than 25% owned by foreigners from “unfriendly states.”
Mercedes-Benz has a automobile plant within the city of Esipovo 40 km (25 miles) northwest of Moscow with over 1,000 workers that produces E-class sedans and SUVs.
It was opened in April 2019 with Russian President Vladimir Putin in attendance. It was the primary plant in years to be opened by a international carmaker in Russia, the place funding into the previously burgeoning auto business had dried up amid western sanctions and a stagnant financial system.
Talking on the opening ceremony, Putin stated the plant would produce 25,000 vehicles a yr and that funding within the venture had totaled just below $300 million.
Mercedes-Benz stated its Russian models, which had been valued at 2 billion euros as of the tip of 2021, have liabilities to banks of roughly 1 billion euros, for which the carmaker has issued a world assure.
($1 = 0.9086 euros)
(Reporting by Nick Carey, Enhancing by Louise Heavens)
