Latest News

The Wall Street Journal: Production halted at AvtoVAZ factory making Russia’s iconic Lada cars

Lada cars have been a symbol of Russia’s self-reliance since they began rolling off assembly lines during the depths of the Cold War.

On Wednesday, Lada’s factory floors ground to a halt as Western sanctions deprived its parent company of the parts and supplies it needs to make cars, according to people familiar with the matter. Thousands of workers have been placed on leave.

Don’t miss: Yale professor is keeping tabs on companies still operating in Russia despite Ukraine invasion — and many are now pulling out

The disruption shows how Russia’s economy is beginning to feel the bite of sanctions the West imposed on Moscow after Russian President Vladimir Putin decided to invade Ukraine. Russia’s exclusion from the SWIFT interbank payments system has made it hard for Russian companies to transact with suppliers. Supply routes, particularly through Ukraine, are shut and the ruble’s

devaluation has made paying for parts from outside Russia much more expensive.

Such a stoppage was once unthinkable. During Soviet times, Lada’s parent company AvtoVAZ erected a giant factory on the banks of the Volga River, capable of nurturing a homegrown supply chain.

Today, however, AvtoVAZ is owned by French car maker Renault SA



and the Togliatti plant relies on a Renault factory in Romania for subassembly and components. More than 20% of AvtoVAZ’s parts — from connectors to key electronics — come from outside Russia, people familiar with the matter said.

An expanded version of this report appears at

Trending at

Russia set to ban commodity exports following Western sanctions

NATO members mount huge operation to resupply Ukrainian fighters

Saudi, Emirati leaders decline calls with Biden during Ukraine crisis

Read on:

WHO says it has verified 18 attacks on health facilities or workers in Ukraine, as Zelensky calls strike on maternity hospital an ‘atrocity’

Children’s and maternity hospital in Mariupol targeted by Russia as Ukraine attack intensifies further

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News