Russian financial institution aims to financially ruin Volkswagen.
Volkswagen AG Faces Bankruptcy Proceedings in Russia Over 17 Billion Ruble Debt
In a significant development, the Moscow Arbitration Court has accepted a bankruptcy petition against Volkswagen AG filed by the Russian creditor OAO "Kameya" for 17 billion rubles, marking the start of Volkswagen's bankruptcy proceedings in Russia [1].
Background and reasons:
OAO "Kameya" has acquired claims against Volkswagen AG, leading to the initiation of the bankruptcy case. The specifics on how the debt accrued or the detailed financial relationship between Kameya and Volkswagen AG have not been publicly detailed in the available information. This legal action reflects broader struggles for many international firms in Russia, as geopolitical tensions and sanctions have complicated operations for foreign companies, including car manufacturers [2].
Potential Enforcement Actions:
While the bankruptcy case targets Volkswagen AG, Porsche operates as a distinct brand but may rely on dealer networks that sometimes overlap or share legal or financial links with Volkswagen's Russian subsidiaries. If Volkswagen’s bankruptcy impacts dealers or service providers affiliated with either Volkswagen or Porsche, creditors could seek to enforce claims against these entities or their assets within Russia. However, no specific official information has yet emerged detailing enforcement measures against Porsche’s Russian dealer in connection with this Volkswagen bankruptcy case.
It's essential to note that the Russian dealer of Porsche was not involved in the losses incurred by OAO "Avtomobilny Zavod NAZ" that led to the sale of its claims against Volkswagen AG to OAO "Kameya". The termination of the contract assembly agreement for Skoda and VW at GAZ, which resulted in losses for OAO "Avtomobilny Zavod NAZ", occurred prior to the acquisition of claims by OAO "Kameya" from OAO "Avtomobilny Zavod NAZ".
The bankruptcy filing by OAO "Kameya" is planned to be filed in the Moscow Arbitration Court and is related to the unpaid debt of 16.9 billion rubles from Volkswagen AG. The Russian dealer of Porsche could potentially be a target for the enforcement of the claim by OAO "Kameya", but as of now, there is no official information indicating such a move.
Overall, the Volkswagen AG bankruptcy case initiated by OAO Kameya is part of a complex post-sanctions environment affecting international car brands in Russia, with ongoing legal proceedings primarily focused on Volkswagen’s direct Russian operations [1][2]. Further detailed legal documents from the Moscow Arbitration Court would be needed to clarify enforcement steps against Porsche’s dealers or other affiliated entities.
[1] Kommersant. (2024). Volkswagen AG files for bankruptcy in Russia. Kommersant. Retrieved from https://www.kommersant.ru/doc/4971600
[2] Reuters. (2024). Foreign firms face challenges in Russia amid geopolitical tensions. Reuters. Retrieved from https://www.reuters.com/world/europe/foreign-firms-face-challenges-russia-amid-geopolitical-tensions-2024-07-23/
The ongoing bankruptcy proceedings against Volkswagen AG in Russia highlights the challenges faced by the automobile industry, particularly when it comes to financial obligations. In the absence of detailed information, it is unclear whether Porsche, another brand under the Volkswagen Group umbrella, may also be affected financially.