The German truck and carmaker announced it considers giving up its long-running plan to increase its stake in Russian truck maker Kamaz, amid rising tensions between the country and Western states.
According to a recent report from Russian business daily Vedomosti, the truck maker’s next shareholder agreement has forfeit the exclusive right for Daimler to further increase its investment in the company.
“We have no plans to further increase our stake,” confirmed a Daimler spokesman, adding that the company still mulls “cooperation within the Kamaz joint venture”.
Daimler’s stake in Kamaz is 15% now, with 11% controlled directly and the rest through the European Bank for Reconstruction and Development. It also had a reserved partnership agreement that would have entitled him to raise the stake this year or in 2015.
The German company also has a manufacturing joint venture in Russia with Kamaz, which locally builds Mercedez-Benz trucks, with the first also supplying the latter with engines and axles for the brand’s own trucks.
The news of the stalled negotiations also come amid rising political tension surrounding Russia’s annexation of Crimea and the failure to tone down violence at the common border – with the EU and US both imposing economic sanctions against companies and persons in the country.