Massive financial, trade, and transportation sanctions are forcing Russia to adapt to a new reality where most of its business operates under reduced load or doesn’t operate at all. Following the invasion of Ukraine, tens of companies from all around the world have abandoned their operations in the country, and the automotive sector has been affected seriously. Virtually all European automakers have frozen their operations in Russia and it seems that even Lada is facing difficulties carrying on.
A new report from The Wall Street Journal claims the AvtoVAZ-owned brand has halted production at its main plant in Togliatti due to the lack of supplies of different vehicle components. Renault holds a controlling 67.61-percent stake at AvtoVAZ and relies on supplies from its factories in Romania with over 20 percent of the parts for Lada coming from outside Russia, mostly connectors and other electronic components. Lada’s Izhevsk plant has also stopped producing cars.
