PARIS — Renault on Wednesday said it would suspend operations at its plant in Moscow while it assesses options on its majority stake in AvtoVaz, the country’s No. 1 carmaker.
The French carmaker as a consequence revised its operating group margin to around 3 percent from at or above 4 percent.
Renault, which gets about 10 percent of its revenue from Russia, has been reluctant to pull back from the country as all other major automakers have since the invasion of Ukraine.
However the French automaker has faced increasing criticism after it resumed production this week at its Avtoframos plant near Moscow. The factory builds the Renault Duster, Kaptur and Arkana models, and the Nissan Terrano.
“Renault Group activities in its manufacturing plant in Moscow are suspended as of today,” the company said in a statement. “Regarding its stake in AvtoVaz, Renault Group is assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia.”
Earlier, a UK opposition politician who has been campaigning for the sanctioning of Russian oligarchs like Roman Abramovich is calling for British car buyers to boycott Renault.
“Renault resumes manufacture in Russia,” Chris Bryant, a member of parliament for the Labour Party, wrote on Twitter. “It’s time we stopped buying them in the UK.”
Rival Stellantis suspended car imports and exports as part of a broader retreat by companies including Volkswagen, Toyota and Mercedes-Benz. Renault’s Japanese partner Nissan halted exports to the country.
Renault has kept longstanding ties with Russia intact because it’s worried about the high cost of pulling out of its AvtoVaz venture, which owns Lada, Russia’s best-selling car brand.
The carmaker also owns the Avtoframos plant near Moscow. The factory builds the Renault Duster, Kaptur and Arkana models, and the Nissan Terrano.
With its AvtoVaz subsidiary, Renault has about 30 percent of the Russian car market.
Ukraine’s President Volodymyr Zelenskiy said earlier on Wednesday that French companies including Renault must leave the Russian market.
“Renault, Auchan, Leroy Merlin must stop being sponsors of the Russian war machine, stop financing the murder of children and women, of rape,” Zelenskiy said in an address via video link to France’s National Assembly. “French companies must leave the Russian market.”
Seated at a desk in his trademark khaki T-shirt, Zelenskiy received a standing ovation from French lawmakers after his appeal. At his request they also observed a minute of silence in tribute to the victims of the nearly month-long war.
Reuters and Bloomberg contributed to this report