Russia is the Renault group's second largest market in the world behind Europe, with nearly 500,000 vehicles sold in 2021. AvtoVAZ, 69% bought at the end of 2016, produces in particular the two best-selling cars in Russia, the Lada Vesta and Granta, with a total market share of 28.8%.

In its press release, published after a meeting of its board of directors, the group did not announce an exit from Russia, while beginning to open the door to such a scenario.

He warned in any case to be "as a result (...) forced to review its financial outlook for the year 2022 with a group operating margin of around 3%", against more than 4% 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.

"I welcome the statement by the Renault group on the cessation of its industrial activities in Russia. A responsible gesture in the context of Russia's barbaric aggression against Ukraine", reacted on Twitter the head of Ukrainian diplomacy, Dmytro Kouleba.

The minister had previously called on the same social network for a global boycott of Renault, broadcasting a montage putting side by side the "positioning of the group", an old advertisement with actor Kevin Spacey, since accused of sexual assault, and the photo of a civilian in front of a destroyed car and the inscription "Sponsor of Putin's war".

Like other large international groups established in Russia, Renault was under pressure to cease its activities there because of the invasion of Ukraine launched by President Vladimir Putin.

Earlier in the day, Ukrainian President Volodymyr Zelensky, speaking by video link to the French Parliament, had urged French companies operating in Russia to stop supporting the Russian "war machine" in Ukraine, quoting the car manufacturer by name. .

"French companies must leave the Russian market. Renault, Auchan, Leroy Merlin and others, they must stop sponsoring Russia's war machine. They must stop financing the murder of children and women, rape," he said.

"Everyone will remember that values ​​are worth more than profits".

Necessary measures

In its press release, Renault "recalls that it is already implementing the necessary measures to comply with international sanctions", while ensuring that it wants to act "responsibly towards its 45,000 employees in Russia".

AvtoVAZ notably has a gigantic factory in Togliatti (south-west, on the Volga), which employs 35,000 people.

The firm announced on March 16 to send its employees on paid leave for three weeks due to a shortage of imported components, linked to Western sanctions due to the invasion of Ukraine.

In its only factory in its own name, near Moscow, which had been shut down for several weeks and had just resumed work, the diamond brand produces SUVs Duster, Kaptur, Arkana, and Nissan Terrano.

The recent sanctions announced against Russia sounded the death knell for the massive investments made by the world's major automakers in the country during a period of growth in the 2000s.

The Renault group is particularly exposed, being associated in Russia with the Russian public conglomerate Rostec, led by Sergei Chemezov, an ally of Vladimir Putin.

Among the other French companies cited by President Zelensky, Leroy Merlin, which like Auchan belongs to the Mulliez family association, said on Wednesday that it had "decided at the start of the conflict to suspend new investments" in Russia but underlined that a closure would be considered as a "premeditated bankruptcy", "opening the way to an expropriation which would strengthen the financial means of Russia".

© 2022 AFP