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29 Jul, 2022 09:42

French car giant reveals cost of quitting Russia

Renault recorded an over $2 billion writedown on the withdrawal
French car giant reveals cost of quitting Russia

French automaker Renault estimates it lost €2.3 billion ($2.34 billion) in the first half of this year as a result of pulling out of Russia, its second-biggest market, the company said in its financial report published on Friday.

“The result of discontinued operations represents a loss of €2.3 billion in 2022 H1, mainly due to the impairment of the property, plant and equipment, intangible assets and goodwill of AVTOVAZ and Renault Russia as well as the impairment of specific assets held by the other entities of the Group and the result of disposals on the Russian entities sold,” the report reads.

Renault suspended operations in Russia back in March, shortly after the start of the country’s military operation in Ukraine. Then, in May, Renault sold its 100% stake in Renault Russia and its 68% stake in Russian carmaker AVTOVAZ. The company’s assets were transferred to Russian state ownership on May 16. Renault President Jean-Dominique Senard at the time called the decision painful but necessary to protect Renault’s Russian employees.

The Russian authorities said they intend to set up production of a domestic brand car at Renault’s former plant.

For more stories on economy & finance visit RT's business section

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