The Federal Tax Service Initiates Forced Liquidation of "Omoda Cars Rus" and "Exeed Cars Rus"

The Federal Tax Service (FTS) of Russia has initiated the process of forced liquidation of Chery's subsidiaries - "Omoda Cars Rus" and "Exeed Cars Rus" - without prior judicial proceedings. The decision came as a surprise to the founder, "Chery Automobiles Rus", and was initiated in the context of the active transformation of Chery's business in Russia.

In recent months, Chery has been changing the names of its cars and renegotiating contracts with dealers. Instead of "Chery Automobiles Rus", cars will now be shipped through "Tenet Rus" and other legal entities. The names of the cars are also undergoing changes: Tenet replaces Chery, Jeland - Jaecoo, and new names have been prepared for Exeed and Omoda - Esteo and Onives, respectively.

The liquidation of "Omoda Cars Rus" and "Exeed Cars Rus" may be part of Chery's strategy to demonstrate the curtailment of business in Russia, according to automotive journalists. In their opinion, this is necessary for successful preparation for an initial public offering (IPO) on the Hong Kong Stock Exchange.

Due to the fact that Chery sells cars in Russia, the parent company has had problems with American banks. This was reported by Bloomberg. At the end of last year, Chery tried to establish relations with JPMorgan Chase & Co.

The Federal Tax Service began the liquidation process of "Omoda Cars Rus" on August 13, and "Exeed Cars Rus" on August 20. Both legal entities were registered on July 26, 2023, but did not actually carry out their activities. The liquidation was initiated in accordance with an administrative procedure allowing the exclusion of a "non-operating legal entity" from the Unified State Register of Legal Entities (USRLE) without a court decision.

The Federal Tax Service may initiate the liquidation procedure if the company does not provide the necessary reporting documents.

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