Russian authorities have approved a deal that transfers the Russian assets of the German automaker Volkswagen to the Avilon dealer holding structure. This development was disclosed by Interfax, citing a government commission familiar with the matter from market sources, signaling a significant reshaping of VW’s presence in Russia.
The report indicates that Avilon has obtained permission to acquire a 100% stake in Volkswagen Group Rus LLC, the Russian representative office of Volkswagen Group. This move places Avilon at the helm of Volkswagen operations inside the country, affecting strategic decisions, branding, and long term servicing commitments for Russian customers who rely on Volkswagen vehicles and networks. The implications extend beyond a simple ownership change, touching on how the brand will coordinate with local suppliers, service centers, and dealership networks in a market that has faced regulatory and economic shifts in recent years.
Additionally, the agency notes that Avilon will assume control of several associated entities: Volkswagen Components and Services LLC, Scania Leasing LLC, Scania Finance LLC, and Scania Insurance LLC. This bundle creates a consolidated structure for both passenger and commercial vehicle activities, financing, insurance, and aftersales services under one umbrella. Such consolidation can streamline operations, improve procurement and service consistency, and potentially influence customer terms, coverage, and the availability of parts across Russia. The scope underscores a broader strategy to align the VW Group portfolio with a unified local management approach during a period of ongoing economic recalibration.
The reported total value of these transactions, calculated at current exchange rates, is 10.5 billion rubles. Beyond the headline number, the process includes currency considerations for cross-border payments. If the purchasing entity needs to source foreign currency from the domestic market, the daily limit for euros would be capped at 50 million, a constraint that can influence timing and execution of the deal as the parties coordinate regulatory approvals and settlement schedules. These financial parameters reflect the careful balancing act between regulatory oversight, market liquidity, and strategic acquisitions in the Russian automotive sector.
Former Deputy Prime Minister Denis Manturov, who also heads the Ministry of Industry and Trade of Russia, announced that the government commission approved the sale of the former Volkswagen plant in Kaluga to the Avilon dealer. Manturov highlighted that the approval marks a decisive step in reshaping ownership of key manufacturing and distribution assets within Russia, with implications for local employment, technology transfer, and future production plans linked to Volkswagen Group brands. The Kaluga plant has long represented a strategic asset in the region, and its transition under Avilon’s stewardship is expected to influence regional supplier networks, training programs for technicians, and the overall industrial landscape surrounding foreign automotive investment in the country.