Renault restarts production in Moscow, backed by main shareholder, the French government

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Renault has said its electric vehicle unit could fetch an initial public offering price of up to €10bn
Renault has said its electric vehicle unit could fetch an initial public offering price of up to €10bn

The French government has backed carmaker Renault’s decision to resume manufacturing at its Moscow plants.

The company had suspended production last month due to logistical issues relating to the war in Ukraine. The move was made on Vladimir Putin’s order, according to The Guardian.

Renault, which the French government is the main shareholder of, has a two-thirds controlling stake in Russian vehicle firm Avtovaz, which made £156m in 2021 and has 40,000 workers.

Its decision to restart comes against the backdrop of major companies and global brands stopping operations in Russia, which could undermine the global attempt to isolate the Kremlin.

This comes after Authentic Brands, which owns Reebok, said it was taking ‘necessary steps’ to halt its operations in Russia, while Nestlé was criticised by Ukraine’s president Volodymyr Zelenskiy for continuing to sell “essential items”.

Some brands, such as M&S and Burger King, have been unable to stop franchise outlets from operating in Russia.