Russia’s Ministry of Industry and Trade has cleared that Japan’s Toyota Motor (NYSE:TM) Corp has decided to close its plant in Russia. In March, Toyota suspended production in St Petersburg due to supply chain disruptions and stopped vehicle imports into Russia.

The automaker would ensure the fulfilment of all social obligations and significant additional pay-offs to the staff. Also, it is to retain the after-sales service of Toyota and Lexus cars and maintain its dealer network. As per the media reports, the factory has a capacity of 100,000 units a year and produces the Camry and RAV4 models.

Reportedly, the ministry and regional authorities are exploring possible site development scenarios. It is to be noted that many factories in Russia have suspended production and furloughed workers due to shortages of high-tech equipment and an exodus of Western manufacturers after Moscow sent armed forces into Ukraine on February 24.

Founded by Kiichiro Toyoda in 1937, Toyota has become one of the largest automobile makers in the world, producing about 10 million vehicles per year.