Despite War, Renault CEO Won’t Rule Out Reentering Russian Market

Renault’s CEO has not ruled out a return to Russia, despite the ongoing war against Ukraine. The company sold its Russian operations and nearly 68% stake in Avtovaz, maker of Lada cars, in May 2022, resulting in a €2.2 billion write-down according to the Financial Times on February 20.

However, Renault retained an option to buy back its stake within six years. When asked about returning, CEO Luca de Meo said: “I’d rather focus on building the future than catching up on the past… but we’re business people. When we see a business opportunity, we’ll try to grasp it.”

He added, “Honestly, I haven’t thought about that kind of scenario because everything is moving so constantly . . . We have an option: let’s see how things go.”

Before the full-scale invasion of Ukraine, Russia accounted for 10% of Renault’s revenues, and the company employed 45,000 people there. Other carmakers, including Volkswagen, Toyota, Hyundai, and Mercedes-Benz, withdrew from Russia after the invasion.

Renault’s CFO, Thierry Piéton, stated that the likelihood of exercising the buyback option is “very low.” De Meo emphasized that Renault’s focus is on electric and hybrid vehicles to meet EU emissions targets.

De Meo reflected on Renault’s exit from Russia, noting, “When Renault exited Russia in a matter of two weeks, the stock went down 30-35 percent and everybody was saying we were dead.”

Earlier, Kirill Dmitriev, Russia’s top investment manager, presented a document during talks in Riyadh on February 19, aiming to prove that U.S. companies lost $324 billion after pulling out of Russia due to war against Ukraine.