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After Russia Exit, French Auto Giant Renault Eyes Ukraine for Frontline Drone Manufacturing

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After Russia Exit, French Auto Giant Renault Eyes Ukraine for Frontline Drone Manufacturing
Soldiers of Ukraine’s 40th Coastal Defense Brigade launch a SHARK drone to target Russian positions near the Dnipro River in Kherson Oblast. (Photo: Getty Images)

French automotive manufacturer Renault is reportedly preparing to launch production of unmanned aerial vehicles (UAVs) in Ukraine, according to France Info and Euronews.

The initiative is expected to be implemented in cooperation with French small and medium defense enterprises and local Ukrainian partners, with production lines located within a few dozen to several hundred kilometers from the front line.

The move was first hinted at by French Defense Minister Sébastien Lecornu, who in early June said a major French carmaker had been approached to participate in the country’s defense manufacturing effort. On June 8, France Info confirmed that the company in question is Renault.

In a statement cited by French media, Renault acknowledged that it had received an official request from the French government but said that “no final decision has been made at this stage.”

Counter-drone system displayed at a French military base ahead of the Paris 2024 Olympics. (Source: Getty Images)
Counter-drone system displayed at a French military base ahead of the Paris 2024 Olympics. (Source: Getty Images)

The planned drones are expected to support both Ukrainian and French armed forces. Lecornu noted that Ukrainian engineers are fully capable of managing design and production independently, without the need to deploy French workers.

The Ministry of Defense aims to achieve a production rate of several thousand drones within a few months, including FPV and loitering munitions similar to those already used by the Ukrainian Armed Forces.

While Renault now appears to be aligning itself with Ukraine’s defense sector, the company faced significant criticism in 2022 for continuing its operations in Russia during the early months of the full-scale invasion.

According to Reuters, Renault maintained full ownership of its Moscow plant and a 68% stake in Russia’s largest carmaker AvtoVAZ until May 2022. Despite the outbreak of war in February that year, production continued for several weeks.

Only after widespread public pressure — including a direct address by Ukrainian President Volodymyr Zelenskyy to French lawmakers — did Renault suspend operations at its Moscow facility and announce plans to exit the Russian market.

On May 16, 2022, Renault transferred its Moscow operations to the city government and sold its controlling stake in AvtoVAZ to Russia’s state research institute NAMI for a symbolic price of one ruble. The deal included a six-year buyback clause.

Prior to its withdrawal, Russia had been one of Renault’s largest markets, accounting for approximately 10–15% of the company’s global revenue. In 2021, Renault and its subsidiary Lada held a dominant share of the Russian market. According to the company’s 2022 financial report, it wrote off €2.2 billion in Russian assets following the exit.

After Renault’s departure, the Moscow plant was rebranded and began producing “Moskvich” vehicles in cooperation with KamAZ and Chinese suppliers.

Factory worker installs door panels for a Lada Largus on the AvtoVAZ production line in Togliatti, Russia. (Photo: Bloomberg/Getty Images)
Factory worker installs door panels for a Lada Largus on the AvtoVAZ production line in Togliatti, Russia. (Photo: Bloomberg/Getty Images)

AvtoVAZ resumed manufacturing simplified Lada models using localized components, while continuing after-sales service for Renault vehicles already in circulation.

As of 2025, Renault has not resumed any operations in Russia. A Reuters report from April 2025 states that Renault would need to reimburse more than $1.3 billion in reinvestments made by AvtoVAZ to reclaim its previous stake. The company has publicly confirmed it has no plans to return “under current conditions.”

Earlier, in February 2025, Renault CEO Luca de Meo said he wouldn’t rule out a return to Russia, citing the company’s buyback option for its former AvtoVAZ stake. However, he stressed that Renault was focused on future growth, while CFO Thierry Piéton called the chances of reentry “very low.”

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