Volkswagen: Economic Damage to EU From Ukraine Crisis May Be Worse Than COVID-19 Pandemic
MOSCOW (Sputnik) - Russia’s military operation in Ukraine could inflict greater economic damage on European economy than coronavirus pandemic, the head of Volkswagen carmaker, Herbet Diess, told the Financial Times on Thursday.
On 3 March Volkswagen Group said that 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 told the Financial Times, adding that "it could be very risky for the European and German economies".
According to the newspaper, Volkswagen has 7,000 employees in Russia. Volkswagen Group sold over 204,000 cars in Russia last year, out of 9 millions in total.
Russia launched a military operation in Ukraine on 24 February after the breakaway Donbass republics appealed for help in defending themselves against the Ukrainian military. In response, Western nations have rolled out a comprehensive sanctions campaign against Moscow.