Renault suspends Russian operations after Zelenskyy’s sharp criticism

Renault suspends Russian operations after Zelenskyy’s sharp criticism

by Pranali Mehta
  • Renault had recently announced that it planned to continue operations at its the manufacturing plant in Moscow, Russia.
  • The automaker appears to have gone back on that decision after receiving sharp criticism from Volodymyr Zelenskyy, the President of Ukraine.

Renault Group, the French automobile manufacturer, has reportedly announced that it would be suspending operations at its manufacturing plant in Moscow, Russia, effectively walking back on its decision to keep the shop running.

According to reports, the news announcement came shortly after Volodymyr Zelenskyy called out the carmaker for its decision to resume operations at the Moscow factory, which first opened its doors in 2005.

In a video speech to French politicians, Zelenskyy stated that French enterprises must withdraw their operations from the Russian market, slamming Renault as well as other businesses for endorsing the Russian military machine. Renault is part owned by the French state, which controls 15% of the company.

Zelenskyy further added that it is important for everyone to realize that values carry more worth than profits.

While car manufacturers like Nissan, Mercedes-Benz, and Volkswagen, have walked out of the Russian market and suspended supplies in retaliation to the nation's attack on Ukraine, Renault had intended to maintain operations because Russia accounts for roughly a tenth of the company's global income.

Dmytro Kuleba, Ukraine's foreign minister, had already urged for a global boycotting of Renault vehicles in response to the company's decision to remain in the Russian market.

In the press release announcing the backtracking of its decision, Renault also stated that it was assessing all available options with regards to its stake in Russian automaker, AvtoVaz, which builds the infamous Lada vehicles.

Over 400 global firms have either suspended their operations in Russia or scaled back their activities in response to the country’s invasion of Ukraine.

Renault stated given the current situation, it is striving to take the right steps, keeping in mind its responsibility towards its 45,000 employees working in the Russian plant.

The carmaker has also lowered its financial forecast, saying it now expects a group operating margin of roughly 3% against the previous 4% estimate.

Source credit: https://www.politico.eu/article/renault-halts-production-in-russia-after-zelenskyy-rebuke/

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...