Sanctions Workaround? Citroen Cars Roll On In Russia Despite Stellantis Exit, Thanks To Chinese Help

Despite the cessation of production in Russia in 2022, Russian partners have reportedly teamed up with a Chinese counterpart to continue producing Stellantis Citroen cars, according to recent findings.

What Happened: As per the customs data and two anonymous sources, Automotive Technologies, a Russian company, imported at least 42 car kits from China’s Dongfeng Motor Group DNFGY in December, Reuters reported. These kits were then used to assemble Citroen C5 Aircross models at the Kaluga plant, which is still primarily owned by Stellantis.

See Also: Elon Musk Shuts Down Snoop Dogg’s Request For Free Tesla: ‘Everyone Pays Full Price … Including Me’

It remains uncertain whether the imported kits from China contained parts that are under Western sanctions on Russia. This situation underlines the diminished control Western companies have over their brands in Russia since the invasion of Ukraine in February 2022.

Despite the sanctions, the Kaluga plant’s operators hosted an official launch for the “production of medium-sized crossovers” in December 2023. This move signifies the increasing dependence of Moscow’s car industry on Beijing.

Why It Matters: The latest development adds to the series of challenges faced by global automakers in Russia. In May, Volkswagen exited Russia, selling its Russian operations to a local dealer. In December, Hyundai divested its manufacturing facilities in Russia, reportedly incurring a $219 million loss. This shift in the automotive landscape has also seen an increase in Chinese automakers’ presence in the Russian market.

Read Next: Elon Musk Claims Tesla Worker Who Died In Fiery 2022 Crash ‘Unfortunately’ Never Downloaded FSD: ‘Accident Probably Would Not Have Happened’

Image by Alexandros Michailidis via Shutterstock