Czech carmaker Skoda Auto, a unit of German giant Volkswagen, said on Thursday it was closing in on a deal to sell its assets in Russia.

Skoda suspended production at its two Russian plants – Kaluga and Nizhny Novgorod – shortly after Russia invaded Ukraine in February 2022.

Skoda, which produced about 780,000 cars globally in 2022, was in charge of management and financial governance over the group's activities in Russia.

"The Volkswagen group has analysed various scenarios for the future of our business options in Russia," Skoda board chairman Klaus Zellmer told reporters. "The preferred option is to sell the assets of Volkswagen Group Russia... to a third party."

"We are in the final stages of finalising the deal and are expecting to close it rather soon," Zellmer said, adding that he could not go into detail before the deal is signed.

Skoda said it lost almost $700 million in revenue last year because of its withdrawal from Russia

Skoda said it lost almost $700 million in revenue last year because of its withdrawal from Russia.