Renault, the French automaker, began work at its Moscow plant on Monday. However, the group’s spokesperson, Rie Yamane, told CNN on Tuesday that the return will only last three days.
“Renault Russia has confirmed the restart [of production] on Monday but only for three days,” Yamane stated. When inquired why the corporation is restarting production for three days, she declined to provide any information.
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Renault paused manufacturing on February 28 in response to Russia’s invasion of Ukraine, according to CNN’s French affiliate BFMTV.
Before the war, Russia was an important part of Renault’s global empire. According to the group’s 2021 sales results, Russia was the second most important market for Renault, placing only behind the carmaker’s home base in France in terms of sales volume, with 482,264 cars sold.
Renault owns AvtoVAZ, a large Russian automaker whose brand Lada will account for roughly 21% of the Russian market in 2021. According to Renault Group’s 2021 financial statistics, the Lada Vesta and Lada Granta were the two most popular automobile models in Russia in 2021.
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According to data from the Paris stock exchange, Renault’s share price has decreased by more than 26% since Russia initiated the invasion on February 24.
The French state is Renault’s largest single stakeholder, holding 15.01 percent of the company at the end of 2020, according to group data.
Carmakers all across the world have struggled to find semiconductor computer chips required in everything from car radios to windshield wipers, and Russian factories are set to fall farther behind as the country’s economic isolation intensifies. Sanctions implemented by the West on Russia since the invasion have included bans on chip exports.
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Following government pressure and sanctions, some corporations from Europe and other developed economies have been compelled to write off assets in Russia.
The owner of the Reebok sportswear brand, Authentic Brands, announced on Monday that it has “suspended all branded stores and e-commerce operations in Russia.” The brand, which was singled out as one of several Western names that had been reluctant to respond, has approximately 90 locations in Russia.
Those companies that remain in Russia, including the Swiss food and beverage conglomerate Nestlé, are under increasing pressure to cease operations. In a televised speech to thousands of demonstrators in Switzerland’s capital of Berne on Saturday, Ukrainian President Volodymyr Zelensky criticised Nestlé, which continues to sell “essential” products such as infant food, cereals, and even pet foods in Russia.