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Renault announces suspension of activities at Moscow plant

Renault Group is assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia

© Stanislav Krasilnikov/TASS

PARIS, March 24. /TASS/. France’s car producer Renault has suspended the operation of its Moscow plant and it is assessing available options regarding the stake in Avtovaz, the company’s press service said in a statement on Wednesday.

"The Board of Directors of Renault Group met today and approved the following items: Renault Group activities in its manufacturing plant in Moscow are suspended as of today. 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," the statement said.

Renault already implements the necessary measures to comply with international sanctions against Russia, the car maker noted. Particularly, the sanctions imply a ban on supplies of high-tech equipment and components for its production. Amid those decisions, Renault intends to revise its 2022 financial outlook, cutting operating margin from 4% to 3%.

The company has been the owner of a production facility in Moscow since 2005. The plant produces such models as Renault Kaptur, Duster, and Arkana. Over 18 bln rubles were invested in the development of the facility in 2013-2019.

According to its 2021 annual report, Renault posted a 3.6% increase in operating profit to 1.7 bln euro. The company’s total turnover amounted to 46.2 bln euro. Meanwhile, the contribution of Avtovaz to Renault's revenue totaled 2.85 bln euro in 2021, up by 10.4% compared with 2020.

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