Renault, which has its second largest market in Russia, announced on Wednesday that it was suspending its activities in the country due to the invasion of Ukraine. A day after the French company TotalEnergies, which had been heavily criticized for continuing to do business in Russia, it was Renault’s turn, which suspended activities at its Moscow factory, where three models are assembled (Captur, Duster and Arkana), as well as the Terrano of its Nissan partners.
Regarding its nearly 68% stake in the two AvtoVaz units – where most of Renault’s workforce is located – the French company said it “evaluates the possible options”, as it will act “responsibly towards its 45,000 employees in Russia”. Due to this suspension, the automaker acknowledged that “it is forced to review its financial perspectives for 2022”, lowering the operating margin from 4% to 3%.
The war in Ukraine has put Renault in a delicate situation given the importance of Russia, as it is its second market behind France. Last year, the automaker sold 18% of its vehicles in Russia and that country accounted for 10% of its turnover. With the suspension of Renault’s activities, which joins the slowdown in the activity of TotalEnergies, another large French group remains at the center of criticism, Leroy Merlin, which rules out, for now, ceasing to operate in Russia.
In a speech to the French Assembly, Ukrainian President Volodymyr Zelensky yesterday made an explicit criticism of French companies that maintain their activity in Russia despite the circumstances. “They must leave the Russian market: Renault, Auchan, Leroy Merlin and others must leave to be the sponsors of the Russian war machine.”
#Renault #suspends #industrial #operations #Russia