Magna says there’s no pressure to end Russian joint-venture image

According to Donald Walker, the chief executive of Magna International, he wasn’t asked by Canada to end the company’s Russian joint-venture amid the mounting tension in the Ukrainian region.

The comments come after an executive with the Russian partner Avtotor Holding Ltd. said that Magna is under pressure from the company’s home government to end the business in the country.

“I haven’t heard anything and nobody that I’ve contacted has heard anything either, so I don’t know where that’s coming from,” Walker told reporters at an economic summit in Toronto. “We have a number of facilities in Russia and we’ve always had good relations,” he added.

During an encounter with Russian Prime Minister Dmitry Medvedev, Avtotor’s Chairman Vladimir Scherbakov said that its partner was coerced by Canada to end the contract it has with his company. The partnership between the two was set up in November 2012 and produces vehicle assembly parts.

The comments come amid rising tension between Russia on one side, and the European Union, the United States and Canada on the other – as the latter imposed economic sanctions and accused Russian President Vladimir Putin of interfering in the political situation in Ukraine before the neighboring country’s May 25 presidential election.

Via Automotive News Europe