By Dominic Chopping
STOCKHOLM--Swedish truck-and-construction equipment dealer Ferronordic AB and Volvo AB's construction-equipment unit said late Monday that they have terminated their dealer agreement in Russia.
Ferronordic has been the official dealer of Volvo construction equipment in Russia since 2010, but as a result of the military conflict in Ukraine, the Volvo unit has suspended sales to Russia and stopped delivering machines and parts to the country.
"As all payables for delivered machines and parts have now been settled and the parties have no claims against each other, Ferronordic and Volvo CE have agreed that it is in their mutual best interest to terminate the dealer agreement for Russia," Ferronordic said in a statement.
As part of the agreement, Volvo Construction Equipment will pay 321 million Swedish kronor ($30.1 million) to Ferronordic as compensation for incurred and potential costs and losses related to the termination.
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(END) Dow Jones Newswires