Volkswagen cannot buy a stake in Russian automaker GAZ because the company is under U.S. sanctions and talks on a deal have been suspended, RIA news agency reported on Wednesday, citing the head of VW`s Russian operations.
Sanctioned businessman Oleg Deripaska has been seeking to divest his stake in GAZ as part of a potential deal with the United States to lift its sanctions on the company and VW was viewed as a possible buyer.
Washington dropped sanctions on Deripaska`s core empire - aluminium giant Rusal and its parent En - in December after he reduced his stake in the businesses.
"At the moment this (a deal to buy a share in GAZ) is not possible for us because of sanctions ... Talks are suspended," RIA quoted Marcus Osegowitsch, Volkswagen`s Russia head, as saying.
Sources told Reuters in December 2017 that Volkswagen was in talks to buy a stake in GAZ.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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