By Elena Fabrichnaya and Alexander Marrow
MOSCOW (Reuters) – Russian banker Igor Kim has acquired Volkswagen Bank Rus, the German automaker’s former finance arm in Russia, federal tax documents showed, adding to the businessman’s growing portfolio that includes British bank HSBC’s former Russian subsidiary.
Over a thousand Western companies have exited Russia since it sent troops into Ukraine three years ago, often selling for nominal amounts as Moscow has demanded discounts of at least 60%. Western carmakers halted operations and have steadily abandoned a market now dominated by Chinese competitors.
Volkswagen finalised the sale of local subsidiaries and a plant south of Moscow to Russian investors in May 2023. The price was not disclosed, but a person familiar with the matter told Reuters the deal was valued at 125 million euros ($131.1 million).
The banking arm remained under the ownership of Volkswagen Financial Services Overseas AG and Volkswagen Bank GmbH, according to a December 2024 decree from President Vladimir Putin that authorised the asset’s sale. Presidential approval is required for the sale of finance and energy assets.
Kim acquired 45% of the company’s shares on February 25, the tax records showed, with 55% now held by ExpoMobility, a car leasing company he controls. Financial terms were not disclosed and a representative for Kim did not immediately respond to requests for comment.
Volkswagen Financial Services said it could not comment on the topic of Volkswagen Bank Rus at this time.
U.S. President Donald Trump’s push for a quick deal on the future of Ukraine has led investors to wonder whether Western companies might seek to return to Russia, but the makeup of Russian markets has changed in the last three years and risk of seizure remains a constant threat.
A company controlled by Kim had previously bought two other former Volkswagen units in Russia: Volkswagen Financial Services Rus and Volkswagen Group Finance. Kim’s Expobank, in which he holds an 85.45% stake, finalised the purchase of HSBC’s Russian subsidiary in May 2024.
($1 = 0.9535 euros)
(Reporting by Elena Fabrichnaya in Moscow and Alexander Marrow in London; additional reporting by Victoria Waldersee in Berlin; Editing by Tomasz Janowski)
