At the Eastern Economic Forum, Maxim Sokolov, the president of AVTOVAZ, weighed the future of Renault Group’s involvement in Russia. He suggested that the French conglomerate, which has cooperated with the Russian automotive giant since 2005 and then suspended relations after the events of February 2022, could potentially resume its activities in the Russian market. In a candid interview with RBC, Sokolov indicated that a withdrawal from Russia would not make commercial sense, framing the move as economically unprofitable for Renault and its partners. This stance underscores a broader strategic calculation about continuity in a difficult international landscape and hints at ongoing negotiations or at least a readiness to revisit terms if conditions were favorable for both sides. The conversation reflects the delicate balance between geopolitical realities and the stubborn economics of a shared value chain that includes tooling, supplier networks, and market access. The possibility of Renault returning to Russia remains on the table, subject to evolving business assessments and policy developments that shape the viability of joint operations in the near term. (Attribution: RBC interview conducted during the Eastern Economic Forum.)
Asked about the pressure visible behind the scene, Sokolov pointed out that the situation involves a mix of market forces and strategic expectations. He argued that no company willingly concedes a substantial portion of its income, especially one that has contributed significantly to local manufacturing ecosystems. By his account, Renault’s presence in AVTOVAZ historically accounted for a substantial share of the Russian partner’s profits in 2021, illustrating how mutual dependence can complicate abrupt disengagement. In May 2022, agreements were signed to transfer certain Russian assets from Renault Group to the Russian Federation and to the Moscow city government, creating a framework that included an option for Renault to reduce its stake in AVTOVAZ over the following six years. This arrangement reflects a pragmatic approach by all parties to preserve industrial continuity while navigating complex ownership and control questions. (Attribution: official filings and market analyses discussed at the time.)
The current reality at AVTOVAZ shows a marked narrowing of collaboration with the French automaker. Interaction with Renault has largely diminished, and the Russian plant has not resumed the production of the Lada XRAY hatchback, a model developed in collaboration with Renault. The partial standstill in joint projects and the absence of new co-developed product launches illustrate how rapidly strategic alignments can shift in response to external pressures, sanctions, and corporate strategy recalibration. This environment poses challenges for suppliers, manufacturers of auto parts, and the broader ecosystem tied to AVTOVAZ’s output. The situation continues to unfold as both sides reassess options, weighing the benefits of continued partnership against the risks and costs of ongoing disconnection. (Attribution: industry observers and company statements.)
- Now, interaction with the French at AVTOVAZ has been reduced to virtually zero – in particular, the Russian factory has refused to resume production of the Lada XRAY hatchback co-developed with Renault.
- “Behind the wheel” can be read in Odnoklassniki.