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Volvo suspends production and sales of cars in Russia

Swedish truck maker Volvo said on Monday it had halted production at its Russian factory and stopped sales in Russia as a result of sanctions and a deteriorating security situation.

Obukhov Volvo City, one of the biggest Volvo dealers in Moscow, back in 2007.
Obukhov Volvo City, one of the biggest Volvo dealers in Moscow, back in 2007. Photo: Volvo Cars

Spokesman Claes Eliasson said Volvo had told suppliers on Friday that it would no longer accept deliveries to the factory in Kaluga, some 150 kilometres (93 miles) southwest of Moscow.

“As a consequence the production line was stopped this morning,” Eliasson told AFP. “The reason is in part the sanctions that have come into effect and the general security situation in the region,” he added, saying production would remain halted “until further notice”.

Sales were stopped in Russia as well as in Ukraine due to the deteriorating security situation as Moscow’s invasion of its neighbour entered its fifth day.

Sales in Russia and Ukraine accounted for 3.5 percent of the truck maker’s revenue in 2021 and around 5,000 trucks are produced at the Kaluga plant a year, according to Eliasson.

EU countries have imposed a slew of sanctions against Russia following the invasion.

Over the weekend European Commission chief Ursula von der Leyen announced plans to cut some Russian banks out of the SWIFT interbank messaging network and ban all transactions with Russia’s central bank.

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BUSINESS

Huawei loses Swedish appeal over 5G ban

A Swedish court on Wednesday rejected an appeal from China's Huawei over the government's decision to ban the network equipment giant from the rollout of 5G mobile network infrastructure in the Nordic country.

Huawei loses Swedish appeal over 5G ban

The administrative court of appeal in Stockholm said in a statement it believed it was fair to assume that the use of Huawei’s products in central functions of the 5G network “can cause harm to Sweden’s security.”

After the UK in the summer of 2020, Sweden became the second country in Europe and the first in the EU to explicitly ban Huawei from almost all of the network infrastructure needed to run its 5G mobile network.

Beijing warned at the time that the Swedish Post and Telecom Authority’s (PTS) decision could have “consequences” for the Scandinavian country’s companies in China, prompting Swedish telecom giant and Huawei competitor Ericsson to worry about retaliatory measures.

The PTS’ decision also included a provision that equipment already installed had to be removed by January 1, 2025, which the appeals court also confirmed.

“Sweden’s security is a particularly strong interest and the Swedish Post and Telecom Authority’s decision is based on a real, current and sufficiently serious threat to Sweden’s security,” judge Anita Linder said in a statement.

Huawei first appealed the decision to a lower court which also sided with the PTS in June 2021.

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