VW boss says revived global trade needs war to end in Ukraine

CEO Herbert Diess calls for negotiations to end the conflict and open up the world again

Volkswagen Group CEO Herbert Diess has called for a negotiated settlement to the war in Ukraine. EPA

The head of carmaker Volkswagen called on the EU to pursue a negotiated settlement to end the war in Ukraine to revive global free trade, the Financial Times reported.

His comments sparked anger in Ukraine where politicians urged Herbert Diess to appeal directly to Vladimir Putin to end the invasion of its neighbour.

The German government has faced criticism its response to helping Ukraine has been too hesitant and slow in delivering arms in part because of its heavy reliance on Russian gas.

At the Financial Times’ Future of the Car summit on Monday, the VW chief executive called for negotiations to end the war and “get back to trying to open up the world again”.

“I think we should not give up on open markets and free trade and I think we should not give up on negotiating and trying to settle,” the newspaper reported him saying.

Ukraine’s political leaders called on Mr Diess to use his influence to press Russia to end the war.

The country’s foreign minister, Dmytro Kuleba, told the newspaper: “The best strategy for major German business would be to fully sever business ties with Russia and then call on Russia to stop the war and return to diplomacy.”

The company in March expressed “dismay and shock” at the invasion and announced it was suspending local production and exports to Russia.

VW said Mr Diess had only repeated comments made by the company since the start of the war that it fully supported the end to fighting “on the basis of international law”.

“The Volkswagen Group has provided over €5m in financial support as well as vehicles and logistics and other humanitarian support in neighbouring countries,” the company said.

“As part of the discussion Dr Diess mentioned the risk of a deep recession in Europe if the war was prolonged with impacts on raw materials and energy.

“Also the impact on global markets from a withdrawal of international trade would not be beneficial for the global economy. If a resolution could be reached the worst case scenario of a deep recession might be avoided.”