Russia’s military operation in Ukraine could inflict greater economic damage on the European economy than coronavirus pandemic, the head of Volkswagen carmaker, Herbet Diess, said on Thursday.
On March 3, Volkswagen Group said it would suspend production at its Russian plants in Kaluga and Nizhny Novgorod, with vehicle deliveries to Russia also suspended.
The interruption to global supply chains “could lead to huge price increases, scarcity of energy and inflation, Diess said, adding that it could be very risky for the European and German economies.
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Volkswagen has 7,000 employees in Russia, it sold over 204,000 cars in Russia in 2021, out of 9 million in total.
Russia launched a military operation in Ukraine on Feb. 24 after the breakaway Donbas republics appealed for help in defending themselves against the Ukrainian military.
In response, Western nations have rolled out comprehensive sanctions against Russia. (Sputnik/NAN)
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