Audi has announced they it temporarily stop selling cars to dealership in Russia following a steep decline in the value of the rouble. The steps are a result of parent company Volkswagen’s desire to manage its business risk spurred by the volatility of the country’s currency, the Russian rouble.
Over the last several weeks, the rouble saw a steep drop in value due to slumping oil prices and sanctions imposed by the U.S. and Europe over Russia’s involvement in the Ukraine. Just last week, the currency fell as much as 20 percent in value against the U.S. dollar; since the start of the year, it has lost about half of its value.
Volkswagen Group says Audi will reboot its Russian operations after it can adjust the prices of its products. BMW, the world’s largest global luxury automaker, is already diverting vehicles destined for Russia to other markets around the world. Volkswagen says that it will continue to sell its products in the region, but is watching the market closely.