Amid Ukraine Invasion, French automaker, Renault hangs up industrial activities in Russia.
The move comes days after Renault announced the resumption of production at its Moscow Plant.
Russia accounted for 18% of the group’s overall volume last year with over 482,000 vehicles sold.
The French Automaker, Renault has suspended its industrial activities in Russia. The decision comes days after announcing resumption of production at Moscow plant, following threats by Russia to take over fleeing foreign companies.
In a statement published late on Wednesday, the company’s 17-member board of directors, led by Chairman Jean-Dominique Senard, suggested Renault could cut ties to AvtoVaz, its majority-owned subsidiary that builds Lada cars.
A potential disposal of its 68% interest would leave Russian state-owned conglomerate Rostec as the sole owner of the company.
“Regarding its stake in AvtoVaz, Renault Group is assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia,” it said.
Russia, Renault’s second largest market, accounted for 18% of the group’s overall volume last year with over 482,000 vehicles sold, led by the top two most popular cars in the country: the Lada Vesta and Lada Granta.