Renault announces the immediate suspension of its factory in Moscow

French car manufacturer Renault announced this Wednesday the immediate suspension of the activities of its factory in Moscowafter what Ukraine called for an international boycott of the firm for remaining in Russia.

Renault also said in a statement that it was examining “the options” for its Russian subsidiary AvtoVAZ, adding that those decisions had forced it to revise down its financial outlook for 2022.

The Renault Group Board of Directors decided that “the activities of the Renault factory in Moscow are suspended this very day,” the statement said.

That plant produces the Duster, Kaptur, Arkana and Nissan Terrano SUV models.

Russia is Renault’s second largest market, after the European Union (EU). But its presence in that country is ensured above all by its subsidiary AvtoVAZ, thanks to which it sold 500,000 vehicles in 2021.

In the context of international pressure, Renault also indicated that “it is evaluating the options related to its participation in AvtoVAZ”, of which it controls 69% of the capital.

He specified that this reflection is carried out “with a sense of responsibility for its 45,000 employees in Russia”, where it is the market leader with its Lada brand.

Ukrainian President Volodimir Zelensky on Wednesday called on French lawmakers for Ukrainian companies to leave Russia.

And a few hours later the head of Ukrainian diplomacy, Dmytro Kuleba, called for a worldwide “boycott” of Renault, accusing the company with the diamond logo of “supporting a brutal war of aggression.”

In its statement, Renault “recalls that it is already adopting the necessary measures to respect the international sanctions” approved against Russia.

“As a consequence of these decisions, the Renault Group is forced to review its financial perspectives for the year 2022.”

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