MOSCOW -- Toyota has decided to close its plant in Russia, Russia's Ministry of Industry and Trade said in a statement.
Toyota suspended production at the factory in St Petersburg in March following Russia-ukraine War, which led to supply chain disruptions. The automaker also Stopped vehicle imports into Russia.
The factory has a capacity of 100,000 units a year. It produced the Camry midsize sedans and RAV4 midsize SUVs for the Russian market with exports to Belarus, Kazakhstan and Armenia.
Toyota will ensure the fulfilment of all social obligations, as well as significant additional payoffs to the staff and will retain after-sales service of Toyota and Lexus cars and maintain its dealer network, the ministry said on Friday.
The ministry and regional authorities are working on possible scenarios to develop the site, the ministry said.
Toyota has decided not to resume production at the plant because it has not been able to ensure the supply of components, the Kommersant newspaper reported on Friday.
Many factories in Russia have suspended production and furloughed workers due to shortages of high-tech equipment and an exodus of Western manufacturers.
Moscow's invasion of Ukraine on Feb. 24 has prompted a mass corporate exodus from Russia, leaving behind assets worth billions of dollars.
More than 750 companies have announced they are curtailing operations there to some degree, according to the Yale School of Management.
Renault sold its majority stake in AvtoVAZ , Russia's biggest automaker and owner of the Lada brand, in May to a Russian science institute, reportedly for just one ruble with a six-year option to buy it back.
Last year, the Saint Petersburg plant built 42,235 RAV4s and 38,547 Camry sedans, according to Toyota.
With 38,441 units sold, the RAV4 was the 11th best-selling model in Russia last year, ahead of the Camry at 31,983 units, figures from the Moscow-based AEB Automobile Manufacturers Committee show.
The factory began production in December 2007 after a 38 billion ruble investment (about 680 million euros at the current exchange rate).
Automotive News Europe contributed to this report
