The top manager of GAZ has announced plans to attract VW to a SPIC

The top manager of GAZ has announced plans to attract VW to a SPIC


 

TASS.- A SPIC between GAZ Group, Russian Ministry of Industry and Commerce and the government of the Nizhny Novgorod region is designed to attract the German car manufacturer Volkswagen. The topic has been reported by Handelsblatt newspaper on Monday, citing the chairman of the Russian company’s board of directors Siegfried Wolff.

According to Wolff, as reported by Handelsblatt, the project is specifically designed for the participation of the German company, however, not being mentioned in the contract itself. Meanwhile, as reminded by the chairman of the board of directors of GAZ Group, the deadline set by the US Treasury, by which the investors must complete transactions with Russian companies expires on 7 March.

“We hope that a decision will be taken within the next two weeks” – said Wolff. According to Wolff, the deadline may be extended again, however, a final decision has to be made.

The US authorities have announced the introduction of sanctions against GAZ Group as of spring 2018. The Russian company, controlled by Oleg Deripaska, has been subject to sanctions alongside other assets of the businessman, including Rusal, En+, Basic Element, Eurosibenergo and Russian Machines holdings, Kuban agricultural holding and B-Finance investment company. Inclusion in the sanctions list leads to a freeze of assets in the United States and a ban for American citizens on doing any business with the listed companies.

In the meantime, the deadline for the completion of transactions with the companies of Deripaska has repeatedly been postponed and the US Treasury has announced the lifting of sanctions against Rusal, En+ holding and Eurosibenergo, since Deripaska fulfilled the conditions set by the US authorities.

GAZ Group has signed a SPIC with the Ministry of Industry and Commerce and the regional government of Nizhny Novgorod on 10 December 2018. As proposed by the document, the company will invest around 20.9 billion rubles in the development of production for the duration of ten years, as well as the localisation of a number of key components and technologies. According to Kommersant data, the partners may invest an additional amount of 13.7 billion rubles in the development of joint products, once Volkswagen is persuaded.