International automaker Renault shut down operations at its Moscow plant Monday due to “logistic issues.”
As the parent company to Russian automaker Lada, Renault’s plant won’t be operational until after March 5.
“We are following the ongoing situation very carefully,” a Renault spokesperson told the Washington Examiner. “We observe some logistic impacts: production at the Renault Moscow plant is temporarily suspended from February 28 to March 5 due to some logistics issues.”
This comes as multiple automakers are halting their exports into Russia because of international sanctions. Companies that have stopped business operations in the country include Volvo, Volkswagen, Mercedes-Benz, and GM.
GM SUSPENDS BUSINESS WITH RUSSIA, JOINING VOLVO, VOLKSWAGEN, AND MERCEDES-BENZ
Renault stocks subsequently dropped 11% by the close of the Paris Stock Exchange Tuesday. Its value has dropped 37% since Feb. 16. This marks the stock’s lowest since November 2020.
Lada produced both of Russia’s top two most popular cars purchased in 2021: its Vesta and Granta models. Both sold a combined total of more than 225,000 cars last year.
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Russia remains Renault’s second-biggest market, reportedly earning over $5.5 billion annually.
