Renault will soon decide on the future of its operations in Russia due to the ongoing invasion of Ukraine.
While speaking with members of the media at the FT Future of the Car 2022 conference, Renault chief executive Luca de Meo confirmed that a final decision has yet to be made, Reuters reports.
“Negotiations are still ongoing,” de Meo said. “But we also know that we’ve been working for 10 years investing a lot of money there so we are also here to protect our assets and what we’ve done.”
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The French car manufacturer has come under criticism since the war broke out due to its significant presence in the Russian market. In fact, it owns a 67.61 per cent majority stake in Lada Auto Holding which owns Russia’s largest vehicle manufacturer AutoVAZ. Renault has taken its time in deciding whether or not to leave the Russian market.
In late April, reports emerged that Renault was in talks to sell off its stake in Lada Auto Holding to a Russian state research institute for the price of just 1 Rouble (14 cents). While this deal has yet to be finalized, it is claimed that Renault would have the option of a buyback within five or six years, although the price of this would vary depending on the investments made by Russia over the coming years. It is also alleged that Renault’s stake in its Moscow plant could be transferred to a local government.
“It is not in our plans to buy or, even more so, to nationalize,” Russian trade minister Denis Manturov said last month, according to The Financial Times. “But if the company does not have the ability to ensure the supply of components today, we cannot wait forever. We will have to find an alternative… This will apply to all automakers who will take their time with the decision.”
