Renault disclosed that its net loss from winding down operations in Russia reached 2.3 billion euros. The loss stems primarily from impairments across property, plant and equipment, intangible assets, and goodwill tied to AVTOVAZ and Renault Russia. Additional impairments affected other Group assets that were sold when the Russian entities changed hands.
The move to suspend activities in Russia came under strong pressure from the European Union, which led Renault to transfer its assets into state ownership. The Renault group transferred its stake in AVTOVAZ to the state enterprise FSUE NAMI, and the Renault Russia plant was handed over to the city of Moscow. These actions marked a pivotal realignment of Renault’s regional footprint amid geopolitical pressures.
Renault notes in its report that the share sale agreement for its Russian stake grants the group the option to repurchase its holding in AVTOVAZ within the next six years. This potential path back to ownership reflects strategic planning aimed at future flexibility should conditions become favorable again.
On the top line, Renault reported total turnover of 21.121 billion euros for the period, a modest rise of 0.3 percent versus the first half of 2021. The six-month production tally stood at 348,000 vehicles, down from 427,000 in the year-earlier period, a figure that includes roughly 12,000 vehicles produced in Russia before the exit decision took full effect. The shortfall highlights ongoing global supply constraints, notably the persistent semiconductor shortage that continues to throttle output for many automakers. It is projected that approximately 300,000 vehicles could remain under-produced by year-end if supply conditions fail to improve significantly.
In its Capital Market Day presentation slated for autumn, Renault intends to unveil an updated version of its Renaulution strategy, signaling how the company plans to navigate the post-Russia restructuring while pursuing long-term growth and profitability goals. The company is likely to outline revised milestones, resource allocation, and product plans designed to strengthen margins and return to more stable volume levels as markets normalize.
The decision to leave Russia was described by Renault’s leadership as extraordinarily painful, with Jean-Dominique Senard, the former president, acknowledging the emotional and strategic toll of the withdrawal. The episode underscores Renault’s willingness to prioritize regional risk management and compliance with international norms over short-term gains in a volatile environment. Industry observers note that the move may influence Renault’s approach to global manufacturing structure, supplier diversification, and strategic partnerships as the company seeks to rebalance its international portfolio.
Analysts and market watchers will be paying close attention to how Renault documents the impairment charges in subsequent quarterly reports and whether any residual asset recoveries appear in future periods. The company’s emphasis remains on maintaining liquidity, protecting core franchises, and continuing to fund the Renaulution transformation while adapting to evolving regulatory and geopolitical realities. Overall, Renault’s Russia exit marks a defining moment in its corporate strategy, one that will shape the group’s trajectory in the years ahead. The narrative around the end of Russia operations will likely influence perceptions of Renault’s risk posture and its ability to recalibrate its operations in response to external shocks. The broader industry context sees vehicle makers recalibrating global footprints to align with supply chains, regional demand, and regulatory expectations. In this light, Renault’s experience serves as a case study in crisis management, strategic withdrawal, and the interplay between geopolitical risk and long-term corporate planning. The company remains committed to transparent communication with investors and stakeholders as it progresses through this transition and implements its revised growth agenda. [Source: Renault press materials and market communications]