Renault resumes car production in Russia

Renault stopped production at its plant in Russia last month citing logistics problems. However, the company’s decision to restart production has the backing of the French government, its main shareholder, according to sources cited by Reuters.

Renault has held a two-thirds controlling stake in Russian carmaker Avtovaz since late 2016, after making its first investment in the fast-growing market in 2007. That means it has a The size of its operations is larger than that of most other European rivals in Russia, with 40,000 employees there, posing a major challenge as the governments of the US, UK and the European Union (EU) try to isolate Russia economically.

Avtovaz sold nearly 2,900 cars in 2021, generating a pre-tax profit of 186 million euros (£156 million) for Renault – or about 12 per cent of its income in 2021. Avtovaz started out as a state-owned enterprise. in the Soviet Union and later the Lada brand.