Russia sanctions globe’s biggest truck manufacturer

(MENAFN) Russia has placed sanctions on Daimler Truck, the world’s largest truck manufacturer and a key supplier to the German military. This decision, outlined in a government decree last week, targets the German company due to its previous ties with Russian vehicle producer KamAZ, where it had held a 15% stake since 2008 and co-managed a joint venture for manufacturing heavy truck components.

Daimler becomes the 33rd entity sanctioned by Moscow since May 2022, as part of Russia’s retaliation against Western restrictions over the Ukraine conflict. The sanctions ban Russian individuals and businesses from entering into agreements or financial dealings with listed companies, although specific exemptions may be granted by the government.

Following the escalation of the Ukraine conflict in 2022, Daimler and other German automakers halted operations in Russia. Although Daimler initially hesitated to fully exit the market, it eventually divested its Russian assets. KamAZ’s CEO confirmed in early 2024 that Daimler had completely severed ties by 2022. Chinese companies have since stepped in to fill the gap left by German firms.

Daimler remains a crucial supplier to the German military, notably through its Mercedes-Benz Special Trucks division, which delivers specialized vehicles such as the Arocs logistics trucks equipped for military use.

Russia’s sanctions coincide with Germany’s increasingly aggressive policies toward Moscow under Chancellor Friedrich Merz, who has pushed for greater military aid to Ukraine and advocated for Kyiv’s unrestricted use of long-range missiles. Moscow has warned that such actions risk escalating the conflict and could lead Germany into direct confrontation with Russia.

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