The ROAD, Russia’s Association of Automobile Dealers, has initiated legal action against Renault. This development was disclosed to socialbites.ca by Alexei Podshchekoldin, who heads PATH. The claim centers on financial losses suffered by dealers following Renault’s withdrawal from the Russian market, and there is an expectation that dealers may pursue ownership stakes in Renault Russia as part of the dispute.
Podshchekoldin explained that Renault, at the time of its retreat from Russia, reserved the right to acquire shares in AvtoVAZ for a token price of one ruble. Based on this provision, the dealers intend to seek compensation that would include the nominal ruble value as part of the broader damages being claimed.
Renault halted its operations in Russia in March 2022. Later that year, during the second half of May, the Ministry of Industry and Trade announced that Renault Group’s Russian assets had been placed under state control. The city of Moscow took ownership of the securities tied to the Renault Russia plant, and Renault’s stake in AvtoVAZ was transferred to the NAMI institute, an entity associated with the ministry. Minister Denis Manturov stated that this transfer of the automaker’s assets to the state was described as a ruble-based agreement with a potential buyback option.
From its exit, Renault reported a net loss of 2.3 billion euros related to its Russian activities, reflecting the financial impact of shuttering operations in the market. The broader strategic implications of this sequence of events have drawn attention from industry observers and prompted ongoing discussions about the future governance of the assets involved and the potential legal remedies sought by the dealers.
There have also been reports suggesting that Dongfeng, a major partner in the region, is in talks about renewed collaboration with AvtoVAZ, signaling ongoing dynamics in the automotive sector as stakeholders reassess partnerships and production arrangements in light of Renault’s exit and the state’s involvement. These developments add layers to the evolving landscape of Russian automotive manufacturing and distribution, with dealers closely watching how ownership structures and strategic alliances may reshape market access, investment, and future relationships among OEMs and local manufacturers. The situation underscores the delicate balance between regulatory decisions, corporate strategy, and the need to safeguard the interests of a sizeable network of dealers who have faced disruption due to the market realignment.