Chery is leaving Russia

Chery Automobile intends to go public on the Hong Kong stock exchange to raise $1.2 billion.

They plan to spend all of these funds on expanding the line of electric vehicles and hybrids.

According to preliminary data, this includes more than eight new models. Another 20% of revenue will go to foreign expansion.

The company's press service officially confirmed that it had decided to curtail its activities in the Russian Federation in order to "confirm compliance with sanctions and export controls."

A year ago, virtually every fifth car sold in Russia belonged to the concern's brands. In total, the company sold about 325.2 thousand cars.

Chery has already begun to wind down its presence in Russia: in April, its subsidiary, which has been operating since 2005, entered into agreements to transfer assets to three unnamed companies.

A statement on this occasion was made by Rhodium Group senior analyst Gregor Sebastian.

According to him, this decision by Chery is a "huge U-turn."