EconomyFinancialRenault joins the sanctions and closes its plant in...

Renault joins the sanctions and closes its plant in Russia

The French car manufacturer Renault announced on Wednesday the immediate suspension of the activities of its factory in Moscow, after Ukraine called for an international boycott of the firm for remaining in Russia.

Renault also said in a statement that it was examining options for its Russian subsidiary AvtoVAZ, adding that those decisions had forced it to revise down its financial outlook for 2022.

“The activities of the Renault factory in Moscow are suspended this very day,” the Renault Group Board of Directors said in a statement.

That plant produces the Duster, Kaptur, Arkana and Nissan Terrano SUV models.

Russia is Renault’s second market, after the European Union (EU), but its presence in that country is ensured above all by its subsidiary AvtoVAZ, thanks to which it sold 500,000 vehicles in 2021.

In the context of international pressure, Renault added that it is evaluating the options related to its participation in AvtoVAZ, of which it controls 69% of the capital.

The company specified that this reflection is carried out with a sense of responsibility for its 45,000 employees in Russia, where it is the market leader with the Lada brand.

Ukrainian President Volodimir Zelensky on Wednesday called on French lawmakers for Ukrainian companies to leave Russia.

A few hours later, the head of Ukrainian diplomacy, Dmytro Kuleba, called for a worldwide “boycott” of Renault, accusing the company of “supporting a brutal war of aggression”.

In its statement, the French company asserted that it is already adopting the necessary measures to respect the international sanctions approved against Russia.

“As a consequence (of these decisions), the Renault Group is forced to review its financial perspectives for 2022,” the statement added.

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