Volvo suspends cooperation with Russian battle-tank maker

8 April 2014 15:36

Volvo said on Tuesday that it has put a budding partnership with Russian battle-tank maker Uralvagonzavod "on ice" as the Swedish truck maker takes stock of the political crisis in Ukraine after Russia's annexation of Crimea, Wall Street Journal reports.

Volvo said it is waiting to consult with the French authorities before continuing discussions with Uralvagonzavod about their project to make an infantry combat vehicle. The partnership involves the Swedish company's French unit Renault Trucks Defense.

Developments in Ukraine over the past few weeks constituted an "uncertainty factor," Volvo spokeswoman Karin Wik said. "We haven't suspended the cooperation, but it has been postponed"- he added.

The Swedish group planned to deliver drive line parts and engines for a new 30-tonne combat vehicle for the Russian army. The new vehicle aims to replace the BTR-80s, an eight-wheel armored vehicle, currently in service.