Volvo suspends sales in Russia, citing trading sanctions

Volvo has suspended shipments of cars and heavy goods vehicles (HGVs) to Russia in the wake of the country's invasion of Ukraine.

In a statement seen by Reuters, the Swedish manufacturer cited the "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US" as a factor in the decision.

It is the first international car manufacturer to stop sales in Russia in light of the ongoing conflict in Ukraine - and the trading sanctions imposed on Russia by a number of other countries as a result.

The firm did not give a time frame for when sales would resume, saying only that "Volvo Cars will not deliver any cars to the Russian market until further notice".

Reuters said Volvo sold 9000 cars in Russia last year, importing them from factories in Sweden, China and the US. The overall Volvo Group makes 3% of its global sales in Russia. 

Volvo Cars' suspension of Russian sales follows the decision from its commercial vehicle sister company, AB Volvo, to end all production and sales in Russia. 

The firm builds Volvo and Renault-badged HGVs at a plant in Kaluga, around 100 miles from Moscow, which has been in operation since 2009 and employs some 700 workers.

A company spokesperson told Reuters: "We now have a bit more clarity on sanctions and security in the region… This means all operations in Russia end." 

Rival HGV maker Daimler Truck has also suspended its operations in Russia, where it has a 10% stake in domestic commercial and military vehicle manufacturer Kamaz. Daimler said the parts it supplied to Kamaz were being used exclusively for commercial vehicles, but took the decision to "immediately suspend" its business activities in the country.