According to media reports, Renault CEO Luca de Meo recently stated that as U.S. President Trump pushes for a swift peace agreement to end the war between Russia and Ukraine, the company does not rule out the possibility of returning to the Russian market.
When asked whether Renault would re-enter the Russian market, Luca de Meo replied, "I would rather focus on building the future than on making up for the past. But we are businessmen, and when we see a business opportunity, we work hard to seize it." He told the Financial Times, "Frankly, I haven't really considered that possibility (of returning to the Russian market) because everything is constantly changing. But we have the option, so let's see how things develop."
Before the outbreak of the Russia-Ukraine war, Renault was one of the international automakers most deeply involved in the Russian market. It held a controlling stake in Avtovaz, Russia's largest automaker, and derived one-tenth of its revenue from Russia, employing 45,000 people there-far exceeding the presence of many other multinationals previously operating in Russia.
After the outbreak of the Russia-Ukraine conflict, other automakers such as Volkswagen, Toyota, and Hyundai withdrew from Russia. In May 2022, Renault sold its Russian operations, along with nearly 68% of its stake in Avtovaz, at a symbolic price of 2 rubles-a move that resulted in a loss of 2.2 billion euros in assets for the automaker. However, Renault retained the option to repurchase its stake in Avtovaz within six years.
It remains unclear, however, whether the United States or Europe will lift economic sanctions on Russia, as these sanctions could adversely affect any company attempting to do business in Russia. Renault CFO Thierry Piéton told the media earlier on February 20 that the likelihood of triggering the clause to repurchase the Avtovaz stake is "very low."
Luca de Meo noted that the company has other priorities besides returning to the Russian market, including accelerating the launch of electric and hybrid vehicles to meet the new emissions targets that the EU is set to implement.
Previously, Renault had warned that stricter emissions regulations by the EU could reduce the company's profit margin to 7% or slightly above by 2025, down from 7.6% in 2024. In response, CFO Piéton stated that the decline in profitability partly reflected the impact of the company's electric vehicle promotion program, a slowdown in internal combustion engine vehicle sales, and some production cuts at its factories.
It is worth noting that in 2024, Renault defied the overall decline in the European automotive market by achieving strong revenue growth and profitability.
