Renault forced to prepare for retirement from Russia

The manufacturer, which employs 45,000 people in the country, has suspended its activities, while anticipating an outright departure in its accounts

It is up to private companies to decide whether or not they want to continue operations in Russia as long as they comply with sanctions imposed on Moscow, government spokesman Gabriel Attal said on Thursday. The announcement, Wednesday evening, by Renault that it was suspending its activity in the country “is not a decision of the French State”, its largest shareholder, he specified.

“I welcome Renault’s announcement of the cessation of its activities in Russia. This is a responsible gesture in the context of Russia’s barbaric aggression against Ukraine. The day before, the same Dmytro Kouleba, head of Ukrainian diplomacy, had published an avenging tweet calling for a global boycott of the group led by Luca de Meo, accused of supporting “a brutal war of aggression in Europe”.

In the meantime, the manufacturer’s board of directors decided on Wednesday evening to suspend the activities of its Moscow plant, and specified that the group was evaluating “the possible options concerning its participation in AvtoVAZ while acting responsibly towards its 45,000 employees in Russia”.

This board of directors was planned for a long time, specifies the manufacturer, whose first shareholder is the State (15.01% of the capital). Like all companies still present in the country of Vladimir Putin, the situation was monitored on a daily basis.

A few hours after the Ukrainian president called on French companies to stop their trade with Russia so as not to sponsor the war, Renault declared that it was suspending its activities in Moscow.

In a tweet broadcast on Wednesday evening, the French automaker says it is stopping running its site in the Russian capital for an indefinite period while stressing that it is responsibly taking care of the 45,000 people it employs in the country.

Losses could be significant as Russia is Renault’s second-largest market behind France. The group has also announced that it is exploring the possibility of leaving the Russian company AvtoVAZ, which manufactures Lada cars, in which Renault holds a 68% stake.

TotalEnergies, Auchan and Leroy Merlin are also in the crosshairs of President Volodymyr Zelenskyy but are maintaining their presence in Russia for the time being.

As for the pharmaceutical laboratory Sanofi, it announced “to stop any new expenditure which would not be directly linked ” to the supply of its ” essential drugs and vaccines in Russia and Belarus “.