OREANDA-NEWS. The German company BMW abandoned plans to build its car factory in Russia. This was reported by Autonews portal with reference to Stefan Teuchert, the CEO of BMW Group Russia.

According to the top manager, for about a year and a half, the company discussed the conditions for special investment contracts (SPIC) with the Russian government. In the summer of 2019, negotiations were stopped because “the rules of the game have not been decided.”

Teucchert also noted that an increase in the utilization fee in 2020 made the conditions unprofitable for automobile companies that signed the SPIC in 2019 and earlier.

It is mentioned that now there is a new investment regime for the provision of benefits and state subsidies in exchange for investments in automobile production in Russia. To date, investment contracts have been concluded with the GAZ group, the alliance AvtoVAZ – Renault – Nissan – Mitsubishi, Sollers, Hyundai, Toyota, Volkswagen, Daimler and other car manufacturers. As for the BMW plant, it was assumed earlier that it would be built on the territory of the Kaliningrad Region.