GM halts sales to Russian car dealers over ruble collapse
US carmaker General Motors said Thursday it was halting sales to dealers in Russia due to the falling ruble, following in the footsteps of a number of companies seeking to limit their risk until the currency stabilises.
A growing number of companies including Apple and Ikea are deciding to halt sales despite a shopping boom from Russian consumers seeking to buy before the importers raise prices on the goods to take account of the ruble collapse.
Pummelled by falling oil prices and Western sanctions, the Russian currency has gone through wild fluctuations this week, plunging by 20 percent at one point on Tuesday.
"In view of the volatility of ruble exchange rate and with the aim to manage its business risk GM Russia has decided to temporarily suspend wholesaling of vehicles to its dealers in Russia as of December 16th, 2014," spokesman Sergei Lepnukhov told AFP.
He said cars already purchased by customers would be delivered.
The ruble has lost around 50 percent of its value since the beginning of this year as Western sanctions over Russia's annexation of Crimea and support for an insurgency in Ukraine along with falling oil prices have hit the economy of the major energy exporter.
Some companies have been raising prices rapidly, while others like Swedish furniture company Ikea have until now sought to hold off on such moves.
On Thursday, Ikea became the latest company to announce a halt to sales due to a spike in demand.
"Ikea Russia temporarily stops sales of kitchen furniture and appliances due to a large number of customer orders," it said in a statement on its website, adding sales would resume on Saturday.
Apple on Tuesday halted online sales in Russia, saying it was reviewing its pricing.
The company hiked its prices in Russia last month by 20 percent without a warning after its products had suddenly become cheaper than in Europe, an opportunity that some canny consumers spotted.
Some food importers and producers, who usually offer deferred payment terms to retailers, are trying to demand prepayment.
