French Car manufacturer and automotive giant Renault has shut down its operations in the city of Moscow, Russia after officials in Kyiv called for a boycott of Russia and the company. The current presence of Renault in Russia was brought to the fore multiple times and has been a matter of contention since long.
The growing tensions go to prove that it is time for Renault to shut down operations in Russia and side with Ukraine.
“Renault Group has to revise its 2022 financial outlook with a Group operating margin of around 3 percent versus at least 4 percent previously,” it said.
Ukraine’s foreign minister on Wednesday called for a global boycott of Renault over its earlier refusal to leave the Russian market in the aftermath of the Kremlin’s invasion of Ukraine.
“Renault refuses to pull out of Russia,” Foreign Minister Dmytro Kuleba said on Twitter ahead of the company’s announcement. “I call on customers and businesses around the globe to boycott Group Renault.”
Renault is particularly exposed as it invested in AvtoVAZ alongside Rostec, a state-owned defence conglomerate run by a sanctioned close ally of Russian President Vladimir Putin.
“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,” the statement said.
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