Mercedes has $ 2.2 billion in assets in Russia that could be threatened by expropriation proposals

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In its annual report, Mercedes-Benz revealed that it has assets of 2 billion euros (2.18 billion US dollars at current exchange rates), which could be in jeopardy if Russia’s ruling party comes forward with a proposal to nationalize production facilities owned by foreign companies which are suspended. production during the country’s invasion of Ukraine.

The company warns that the war in Ukraine has caused a number of risks ranging from breakage of parts and energy supply to cyber attacks, Reuters reports. It says the risks could be exacerbated by “potential expropriation of assets of Russian subsidiaries.”

Read more: Russia is threatening to nationalize the plants of foreign companies that are shutting down

Mercedes’ comments followed a proposal threatened by a high-ranking member of the ruling United Russia party. nationalize manufacturing enterprises “Companies announcing their exit and closure of production in Russia,” during the attack in Ukraine.

Despite the fact that Mercedes is not the only German manufacturer that has suspended production at plants operating in Russia, her factory in Esipov (near Moscow) was opened in 2019 and became the first plant in recent years under the leadership of a foreign manufacturer. The automaker said its Russian units have liabilities to banks of about 1 billion euros ($ 1.09 billion), for which it has issued a global guarantee.

Russia’s richest man warns that these measures could have the opposite effect

Russian billionaire and president of the Norilsk Nickel metallurgical giant Vladimir Patanin has warned the Kremlin that nationalizing the assets of Western companies could push the country back more than 100 years.

“First, it would take us back a hundred years to 1917, and the consequences of such a move – global distrust of Russia by investors – we would have endured for decades,” Patanin told Telegram. on CNN.

“Second, the decision of many companies to suspend operations in Russia is, I would say, somewhat emotional in nature and may have been taken as a result of unprecedented pressure on them from public opinion abroad. So, most likely, they will return. And personally, I would keep such an opportunity for them, ”the 61-year-old added. “We should not try to slam the door, but try to maintain Russia’s economic position in the markets we have been working on for so long.”

Russia has banned the export of more than 200 goods, including cars

Russia decided this week prohibit the export of certain products (including vehicles) to countries that he said “committed unfriendly acts” against him. The move quickly prompted Stellantis and Hyundai supporters to suspend operations in the country until further notice.

Meanwhile, Lada, Russia’s most popular brand (owned by AvtoVAZ, which in turn is owned by French Renault) forced to suspend productionalthough this decision was made as a result of supply line problems due to foreign sanctions.

Mercedes has $ 2.2 billion in assets in Russia that could be threatened by expropriation proposals

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