As sanctions bite, Volvo suspends car shipments to Russia By Reuters

BEIJING (Reuters) -Swedish automaker Volvo Cars said on Monday it will suspend car shipments to the Russian market until further notice, becoming the first international carmaker to do so as sanctions over Moscow’s invasion of Ukraine continue to bite.

In a statement provided by email, the company said it had made the decision because of “potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US.”

“Volvo Cars will not deliver any cars to the Russian market until further notice,” the company said.

A Volvo spokesman said the carmaker exports vehicles to Russia from plants in Sweden, China and the United States.

Volvo sold around 9,000 cars in Russia in 2021, based on industry data.

Earlier on Monday, Swedish truck maker AB Volvo said it had halted all of its production and sales in Russia due to the Ukraine crisis.

German truck maker Daimler (OTC:) Truck also said on Monday it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz.

Last week several companies, including automakers Volkswagen (DE:) and Renault (PA:) and tire maker Nokian Tyres outlined plans to shut or shift manufacturing operations following Russia’s invasion of Ukraine.

On Sunday, BP (NYSE:) said it was abandoning its stake in Russian oil giant Rosneft in an abrupt and costly end to three decades of operating in Russia, marking the most significant move yet by a Western company in response to Moscow’s invasion of Ukraine.