Recently, The Moscow Times reported, drawing on information from Nikkei News, that Chery is planning to pull out of the Russian market by 2027 to adhere to sanctions and export control regulations. In direct response, Chery's Russian subsidiary has firmly denied these rumors, asserting that the Chery brand has no intentions of leaving the Russian market. Chery did make a note in its Hong Kong stock IPO prospectus. It highlighted that the hike in the scrap tax for imported vehicles in Russia has eaten into its gross profit margins. Moreover, the company announced plans to streamline its operations in Russia starting from 2025. This includes offloading some of its assets and sales channels in April. But it's crucial to clarify that streamlining operations is not synonymous with a market exit. Chery's legal advisor specializing in international sanctions has weighed in, stating that Chery's activities in Russia do not fall under the purview of primary sanctions, and the likelihood of facing secondary sanctions is minimal. From a sales standpoint, it's highly improbable that Chery would readily abandon the Russian market. As of mid-2025, Chinese-brand vehicles have carved out a 6% share of the total passenger vehicles registered in Russia. Among these, Chery stands out, representing 22% of the Chinese cars registered in Russia, solidifying its position as the most sought-after Chinese automotive brand in the country.