US sanctions are hitting Russian AvtoVAZ, FSUE NAMI, Sollers, and Aurus. Thus, Russians may not see the serial production of the new XCITE SUV from Avtozavod St. Petersburg. FSUE NAMI, which owns shares of the plant, has been included in a new package of US sanctions.
According to auto experts, this could mean problems with the assembly of cars and a possible freezing of the plant. Previously, it belonged to AvtoVAZ, but when the concern fell under blocking US sanctions in 2023, the company's shares were transferred to NAMI. This allowed the possibility of maintaining production - at that time it was Lada X-Cross 5.
In this regard, the future of Avtozavod St. Petersburg (formerly Nissan), whose shares, as reported, were transferred to NAMI, is not entirely clear. It is starting to produce cars under the Xcite brand. It seems that the shares will have to be transferred to some other state pocket that is not yet under sanctions so that Avtozavod St. Petersburg can freely work with external partners.
In addition to FSUE NAMI, which is engaged in the development of innovations in the domestic automotive industry, Aurus LLC, the manufacturer of premium Aurus cars, has also been sanctioned. Russian President Vladimir Putin drives these cars, and recently Putin gifted the same car to North Korean leader Kim Jong-un.
There are other companies related to the Russian automotive industry on the new sanctions list. These are:
- Lada Auto Holding LLC, the parent company of AvtoVAZ;
- JSC "SEZ PPT Alabuga", the managing company of the Special Economic Zone in Alabuga, where Aurus are produced. Indirectly, the sanctions also hit Sollers - there, the subsidiary "Sollers Alabuga" produces Sollers Atlant;
- Shushary-Avto LLC, the operator of the former Toyota car plant;
- Alabuga Development LLC, which built the buildings of the Aurus car assembly plant.
Earlier in Russia, a new Interregional Automotive Industry Cluster was discussed, which, according to its creators, will help manufacturers with import substitution. It is assumed that the cluster will restore not only production and jobs for Russians, but also streamline internal production ties between regions. In particular, in terms of the purchase of electronics and parts.
Read more on the topic:
Domestic airbags and seat belts will be installed in Russian cars