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American-European automaker Stellantis announced Tuesday the suspension of production at its factory in Russia, citing a lack of parts and sanctions against Moscow over the Ukraine war.
The group, which was formed in January last year when Fiat-Chrysler and PSA merged, had already announced in March that it was halting imports and exports to and from Russia.
Production for the local market at the Kaluga factory southwest of Moscow also slowed down, and the company had warned that it would have to suspend work due to shortages of components.
The factory was meant to produce Peugeot, Citroen and Opel vans for the European market.
However, Russia’s invasion of Ukraine prompted it to transfer that production to Hordain, in France, and Luton, in England.
“Given the rapid daily increase in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance with all cross sanctions and to protect its employees,” the company said in a statement.
The factory’s 2,700 employees have been temporarily laid off or placed on holiday until June.
Most automakers have suspended their production in Russia since Moscow invaded Ukraine on Feb. 24.
Hundreds of foreign companies, ranging from retailers to banks, have also halted operations there since the war broke out.