The Ministry of Industry and Trade has announced that Russian authorities will decide how to use Renault’s plant in Moscow by next weekend after automakers have announced that they will shut down in Moscow.
Renault, the largest player in the Russian car market, said it would stop production at the plant on Wednesday and value options for a majority stake in Russia’s No. 1 car maker Avtovaz after Russia’s invasion of Ukraine.
Government comments on the future of the factory come after the Kremlin suggests that the assets of foreign companies that have left the country can be nationalized.
“The Ministry of Industry and Trade will discuss with the Moscow government the prospects for the development of the Renault Russian plant. A joint solution will be announced by next weekend,” he said.
The Renault-owned Moscow plant produces Renault Duster, Captur, Arcana and Nissan Terrano models.
“The Ministry of Industry and Trade is in constant contact with the management of AvtoVAZ and the Renault Group,” the ministry said in a statement.
Renault could not get comments immediately.
AvtoVAZ, which is controlled by Renault and produces the Lada and Renault car brands, has partially shut down production at its Togliatti and Izhevsk plants this week due to a shortage of electronic components.
The Russian Ministry of Industry said that everything needed to resume operations on AvtoVAZ’s assembly line, including the creation of parts inventories, has been done.
Since Russia invaded Ukraine on February 24, more than 400 companies have withdrawn from Russia. This is what Moscow calls a “special military operation,” leaving billions of dollars worth of assets.
Other Western companies, including Renault and food companies Nestle and Danon, are facing criticism of their continued presence in the country.