The former VW plant in Kaluga is projected to stay idle for an extended period, with operations not resuming before March 31, 2024, according to a report from TASS citing the press service of the AGR Automotive Group. The prolonged downtime will selectively affect employees who are not directly involved in launching production, coordinating logistics, delivering training, or maintaining corporate infrastructure essentials.
In an official statement, the press service clarified that only specific roles will be paused during the initial phase, while others will continue to support the preparatory work necessary to restart production. This distinction highlights the company’s focus on preserving critical functions and ensuring a controlled transition as operations reconfigure under new ownership.
Context for the shift in ownership traces back to May 2023, when Volkswagen Group disclosed the sale of its assets in Russia, including the Kaluga plant. The buyer was Art-Finance LLC, a subsidiary of the Avilon dealer holding group. Moving forward, Volkswagen Group Rus is operating in Russia under the name AGR LLC, a subsidiary of the AGR Automotive Group, which represents a rebranded structure designed to oversee local manufacturing and distribution activities.
The decision to suspend automobile production at Kaluga and to halt contract assembly at Nizhny Novgorod on March 3, 2022, was attributed to disruptions in global supply chains caused by Western sanctions connected to the events in Ukraine. The pause reflected broader geopolitical and economic tensions affecting the automotive sector, with companies adapting their strategies to navigate an evolving European and global market environment.
Earlier reports also noted that the Hyundai plant near St. Petersburg had shed its familiar branding, signaling shifts in the regional automotive landscape and the consolidation of manufacturing capacity under different corporate configurations. The timing and nature of these changes illustrate how multinational manufacturers recalibrate operations in response to sanctions, supply chain fragility, and market recalibrations across Russia and neighboring markets.