Cost of leaving Russia revealed by French automotive giant

Renault took a write-down of more than $2 billion due to the withdrawal.

In its financial report released on Friday, the French automaker Renault estimated that its exit from Russia, its second-largest market, cost it €2.3 billion ($2.34 billion) in the first half of this year.

According to the report, "the result of discontinued operations represents a loss of €2.3 billion in 2022 H1 and is primarily attributable to the impairment of property, plant, and equipment, intangible assets, and goodwill of AVTOVAZ and Renault Russia as well as the impairment of particular assets held by the other entities of the Group and the result of disposals on the Russian entities sold."

When Russia's military action in Ukraine first began in March, Renault immediately ceased operations there. Then, in May, Renault sold both its 68 percent investment in the Russian automaker AVTOVAZ and its 100 percent stake in Renault Russia. On May 16, the company's assets were given to the Russian government. At the time, Renault President Jean-Dominique Senard described the choice as unpleasant but important to safeguard the company's Russian employees.

The former Renault plant will be used to start producing a native brand of automobiles, according to the Russian government.

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