The board of directors of Renault Group met on Wednesday and decided that "the activities of the Renault factory in Moscow are suspended from this day", specifies the group.

This plant produces Duster, Kaptur, Arkana and Nissan Terrano SUVs.

But the majority of the group's presence in Russia goes through its subsidiary AvtoVAZ, which helped it sell nearly 500,000 vehicles in Russia in 2021, making the country its second largest market behind Europe.

However, the group, challenged by Ukrainian President Volodymyr Zelensky among a few other French companies during a speech in the French Parliament earlier in the day, and targeted in the evening by a call for a global boycott launched by the head of Ukrainian diplomacy, did not announce an exit from Russia, while beginning to open the door to such a scenario.

"The Group is evaluating the possible options concerning its stake in AvtoVAZ", 69% owned by Renault since the end of 2016 and leader of the Russian market with its Lada brand, he added, saying he wanted to act "responsibly towards its 45,000 employees in Russia".

It is not known when Renault's board of directors met on Wednesday, but the announcement comes shortly after the call for a "boycott" of the diamond brand launched by the head of Ukrainian diplomacy Dmytro Kouleba in front of "his refusal to leave Russia" following the invasion of Ukraine by Moscow forces.

In a tweet, Mr Kouleba accused Renault of "supporting a brutal war of aggression".

He therefore calls on "customers and companies around the world to boycott the Renault group".

Volodymyr Zelensky had also urged in his video before the French Parliament the French companies established in Russia to stop supporting the Russian "war machine".

In its press release, Renault "recalls that it is already implementing the necessary measures to comply with international sanctions".

Whatever it decides for its long-term presence in Russia, the group already foresees that it will cost it.

"As a result, Renault Group is forced to review its financial outlook for the year 2022", he warned, predicting a drop in operating margin "of around 3%", against more than 4% previously forecast. .

He also now forecasts only "positive" free cash flow for his "automotive" business, while he was counting on "more than a billion euros previously".

In anticipation, Renault plans to record an adjustment charge of 2.195 billion euros in its accounts for the first half, i.e. the value of its assets in Russia.

© 2022 AFP