The arbitration authorities in Nizhny Novgorod have moved to confiscate the assets of the German automotive concern Volkswagen in Russia, a development reported by Interfax on the basis of materials from the arbitration case files. The report highlights actions taken within the Russian legal framework as part of ongoing litigation between a Russian subsidiary and its German parent.
Details indicate that the GAZ automobile factory filed an application with the Nizhny Novgorod District Arbitration Court on March 14 asking the court to overturn the termination of a contractual assembly agreement with Volkswagen in Russia. Alongside this request, GAZ sought a substantial financial remedy, claiming damages totaling 15.6 billion rubles. The filing signals a broader intent to reassess the contractual and operational arrangements between the parties within the Russian market context.
By March 17, the court granted GAZ’s petition to freeze assets tied to Volkswagen in Russia. The measure encompassed the arrest of shares relating to the German company’s Russian representative office, as well as most of its property located in Russia, with cash holdings excluded from the freeze. The ruling also blocked any actions connected to corporate reorganizations, liquidations, changes in participant structure, and shifts in the authorized capital of Volkswagen’s Russian subsidiary and other entities under its control.
Earlier reports noted a strengthening in the Russian market’s activity, including a broader range of auto parts becoming available to consumers. In particular, the online marketplace Avito reported a notable uptick in listings for auto parts during the first quarter, with volumes increasing by a significant margin and reaching tens of millions of units, reflecting a growing demand and supply dynamic within the domestic automotive ecosystem. These market signals provide context for the arbitration proceedings and the commercial environment in which the parties operate, as observed through market data and the ongoing legal developments.