On October 12, 2026, the Council of the European Union added PAO GAZ (Gorky Automobile Plant, Nizhny Novgorod) to its sanctions list as part of the 22nd package of restrictive measures against Russia. The corresponding regulation was published in the European Union's Official Journal the same day.[1]
Grounds for the sanctions
In justifying its decision, the EU Council stated that PAO GAZ is part of Russia's military-industrial complex. According to the European side, this connection allows the company to receive state subsidies, including to cover housing costs for its employees.[1] In total, the 22nd sanctions package covers about 1,600 companies and individuals, mostly linked to Russia's defense sector.[1]
PAO GAZ's place in the group and the significance of the sanctions
PAO GAZ serves as the parent entity — the consolidation center for the assets of the GAZ Group, which produces light and medium-duty commercial vehicles, buses, powertrains, and automotive components. Including the parent entity on the EU sanctions list means the restrictive measures extend to the activities of the entire group.[2]
Previous sanctions
Entities within the group had already been subject to Western restrictions. In February 2023, the 10th EU sanctions package included OOO Commercial Vehicles — GAZ Group, but PAO GAZ itself was not added to the sanctions list at that time.[1] U.S. sanctions against the company have been in effect since 2018, when it was added to the SDN list; at the end of May 2022, the American restrictions took full effect.[1] The 21st EU sanctions package also included several Nizhny Novgorod companies.[1]
Sources
- NIA Nizhny Novgorod — EU Imposes Sanctions on the Gorky Automobile Plant in Nizhny Novgorod. Nizhny Novgorod News
- Business News. Time to Earn — EU Imposes Sanctions on the Parent Company of the GAZ Group