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Volvo Puts Partnership With Tank Maker UVZ On Hold Over Ukraine

STOCKHOLM — Sweden's Volvo, the world's second biggest truck maker, has put a partnership with Russian battle-tank maker Uralvagonzavod on hold due to increasing tensions between Ukraine and Russia, Volvo said.

The early-stage partnership between Volvo's trucks business in France and Uralvagonzavod (UVZ) was announced in September last year when the two companies said they would jointly develop a new armoured vehicle.

"We have paused (the discussions) and thereby pushing the cooperation ahead in time. And the reason for that is the situation in Crimea, which we see as an uncertainty factor," a Volvo spokeswoman said Wednesday.

She said Volvo needed time to discuss the issue with the French authorities, and that no decision had been taken to end the partnership with UVZ.

The West has imposed sanctions on Russia for its annexation of Crimea, which has become the worst East-West confrontation since the Cold War ended two decades ago.

Ukraine has been in turmoil since late last year when President Viktor Yanukovych put off closer relations with the European Union in favor of closer ties to Russia, provoking mass protests.

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