Renault Ends Russian Operations and Reassesses Its AVTOVAZ Involvement
An official statement on Renault’s global site confirms that the company has halted its activities in Russia. The move came after a meeting of Renault Group’s Board of Directors, which approved a set of measures to align with the evolving circumstances and international sanctions. The decision highlights Renault’s commitment to act with responsibility toward its Russian workforce while reassessing its strategic position in the country.
- Since March 23, the Renault Group has suspended all activities at the Moscow plant, marking a temporary halt while the situation is reviewed.
- Regarding the stake in AVTOVAZ, Renault Group is examining all viable options in light of the current environment and is prioritizing the welfare of its 45,000 Russian employees during the review process.
The Renault group reiterated that it has implemented the necessary steps to comply with international sanctions and regulatory requirements. The leadership emphasized a careful, rule-based approach to all ongoing actions related to Russia operations.
As part of the broader financial outlook, Renault will adjust its 2022 earnings forecast. The operating profit growth target is lowered from 4 percent to 3 percent. Free cash flow from automotive activities remains positive, though the exact figure was not disclosed in the latest update. The company continues to pursue the strategic plan Renaulution, with AVTOVAZ previously a key component of that strategy.
It should be noted that the Moscow plant had recently resumed operations after a pause caused by supply constraints. The full-cycle facility features welding, painting and assembly lines, an engineering center, and an underground test site. It has produced models such as the Duster, Kaptur, Arkana, and Nissan Terrano. Between 2013 and 2019, investments in the plant totaled 18 billion rubles, underscoring Renault’s long-term manufacturing footprint in Russia.
Earlier reporting from Bloomberg indicated that Renault was exploring options to wind down its Russian activities in response to the evolving Ukraine crisis. Renault’s decision followed discussions that occurred late on March 23, after statements from Ukrainian leadership calling for an immediate withdrawal of carmakers from Russia to stop supporting the regime.
Ownership of AVTOVAZ remains a major factor, with Renault Group holding 68 percent and Rostec owning 32 percent. The decision carries significance for both France and Russia, reflecting the influence of state involvement in major corporate assets. The French government, as Renault’s prominent shareholder, and Rostec as a partner in AVTOVAZ are central to the ongoing consideration of strategic options and future steps for the joint venture. In this context, the company states a careful, governance-driven approach to its international commitments and regional operations based on current realities and stakeholder interests, as reported by market observers and industry sources.
Source notes and analyses from industry outlets confirm that the path forward involves a careful assessment of ownership, asset value, and the social responsibilities toward employees affected by the changes, as well as the broader geopolitical and sanctions landscape that shapes corporate decisions in the region.