Chery will reduce the expansion of Russia due to fear of American sanctions

The company is preparing for the initial placement of shares on the Hong Kong Exchange, but international banks decided not to participate in IPO. The reason is the desire to avoid business relationships that can fall under sanctions. Chery is included in the list of the most successful automobile brands in Russia, and American banks are afraid of the consequences. The transaction has already been refused JP Morgan.

According to Bloomberg, the primary placement of Cheri shares on the exchange in Gongonka can attract about $ 1.5 billion, but only Chinese banks have decided to support the automaker. In documents for potential investors, the company promised to reduce operations in Russia to avoid sanctions. Chery also emphasized that trade with Iran and Cuba was stopped at the end of last year.

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Chery and JP Morgan did not comment on inside. Discussions about the IPO in Hong Kong are ongoing, and the terms of the transaction may still change. In addition to the maternal brand, Cheri has a whole line of sub -brands, and in Russia two more brands can appear in Russia. Perhaps the constant renaming of cars is part of the strategy to reduce “sanctions” risks.

At the moment, Cheri in one form or another collaborates with Autotor from Kaliningrad, a plant near Moscow in Esipovo (former Mercedes-Benz), the Kaluga platform of AGR (formerly Volkswagen) and the AGR plant in St. Petersburg (former General Motors).

Three dozen “Chinese”