Renault Russia: Arbitration, Asset Nationalization, and Dealer Claims (Canada/USA Snapshot)

RTDS and BN-Motors, the first domestic dealer holding, initiated arbitration against Renault after the French automaker halted operations in Russia in 2022. This development was reported by Vedomosti. The cumulative claims currently are modest, totaling 760 million rubles. Renault suspended its activities in Russia in March 2022, and by the latter half of May, the Ministry of Industry and Trade announced that Renault Group assets in Russia had been nationalized. The Moscow city government acquired the securities of the Renault Russia plant, and Renault’s stake in AvtoVAZ was transferred to the NAMI Institute under the ministry. The ministry head, Denis Manturov, stated that the asset transfer to the state was formalized through a ruble-based agreement with a buy-back option. According to available figures, Renault’s net loss from halting Russian operations reached 2.3 billion euros. In May 2023, Russian car dealers sought compensation from Renault for losses estimated at 8.5 billion rubles due to the brand’s exit from the market. The Russian Association of Automobile Dealers (ROAD) sent a letter to the company’s president, Jean-Dominique Senard, outlining the financial impact. Previously, KamAZ announced the completion of the first anti-sanction dump truck in the K5 generation, marking a notable development in the sector. (citation: Vedomosti)