Putin takes control of Russia’s largest car dealership

Rolf, Russia’s largest car dealership, found itself under temporary state management when President Vladimir Putin issued a decree putting it under the control of the government. This step, while explained by the Kremlin as an economic necessity, is seen by its founder Sergei Petrov as detrimental to the Russian investment climate, making the country look uninteresting to potential investors.

Rolf, established by Petrov after the collapse of the Soviet Union, has been accused by Russian authorities of illegally moving money abroad, an allegation he vehemently denies. The move to seize Rolf comes amidst a series of similar actions taken by Moscow this year to assume control of Western-owned assets in response to sanctions hitting Russian properties in the West.

The appointment of Alexei Gulyaev as the new CEO and Svetlana Vinogradova as the first deputy aims to maintain operations. According to Russia’s federal property management agency, Rosimushchestvo, the temporary state management is intended to develop Rolf and enhance its financial performance.

Petrov expressed his concern over the impact of this move on Russia’s investment landscape, questioning whether investors from Asia and other regions would be willing to invest in Russian assets. He sees the government’s intervention as part of a larger scheme to redistribute assets and doubts that it will have a positive outcome.

Furthermore, Petrov, who previously criticized East-West relations after Russia’s annexation of Crimea in 2014, accused the legal actions against Rolf of being politically motivated. This included an investigation into Rolf’s share purchases and sentencing a former senior manager to prison, as well as an arrest warrant for himself.

In conclusion, the government’s move to take control of Rolf and put it under temporary management raises concerns about Russia’s investment climate and the fair treatment of business owners. The impact of such actions on the automotive sector and the investment landscape will be closely observed as the situation unfolds.