US sanctions against the GAZ Group come into force

US sanctions against the GAZ Group come into force


RusAutoNews.- After a four-year delay in implementation, the US Treasury Department’s sanctions against Oleg Deripaska’s GAZ Group came into effect on May 25, as reported by Finmarket.

Earlier, the division of the US Department of the Treasury OFAC, responsible for the application of sanctions, regularly extended the sanctions deadline for GAZ from the moment the group and its owner Deripaska fell under sanctions in 2018, publishing the relevant licenses. For the first time in 4 years, there was no publication of a license after the deadline on May 25.

According to Interfax sources, Deripaska hoped to solve the problem with sanctions by attracting a foreign investor to the capital – in particular, the option with Volkswagen was discussed. However, a potential deal could not be agreed with the Russian authorities, and after February 24, such negotiations became impossible.

GAZ is formed of 13 enterprises in eight regions of Russia, manufacturing light and medium-size commercial vehicles, buses, heavy trucks, cars, powertrains and automobile components. The head-quarters of the company are in Nizhny Novgorod.

Volga brand - GAZ Group logo
GAZ Group