Renault is under Russian sanctions for allegedly supporting Ukraine
12 October 12:14
The Russian government has added French automaker Renault SAS to its sanctions list amid reports that the company may be producing drones for Ukraine. This is stated in a decree published on the official legal information portal. This is a list of foreign companies operating in the field of military-technical cooperation that are subject to “special economic measures.” It provides for retaliatory measures “in connection with the unfriendly actions” of some foreign states, "Komersant Ukrainian" reports, citing Russian media.
These measures include a ban on transactions, including foreign trade contracts, restrictions on fulfilling obligations to sanctioned companies in relation to already concluded agreements, a ban on payments to persons on the list, and securities transactions.
The Russian government compiled this sanctions list in May 2022. It includes another category of companies that have been subject to restrictions: legal entities subject to special economic measures (this does not include their activities in the military sphere). In June, this list included another representative of the European automotive industry that operated in the Russian market, the truck manufacturer Daimler Truck AG (Germany).
Renault came to Russia in the early 1990s. In 1992-1993, the concern opened its first office, and in 1998 it signed an agreement with the Russian government to establish a joint venture called Avtoframos. By 2005, a full-cycle plant was set up on its basis. Renault then gradually increased its stake in the company to 100%, and in 2014 it was renamed Renault Russia CJSC.
In April 2022, after the start of Russia’s invasion of Ukraine, the automaker, which occupied almost 30% of the Russian car market, decided to transfer its enterprises in Russia to the state for a symbolic price of one ruble, while receiving a six-year option to buy out its business in the country. After the company’s departure, the Renault Russia plant in Moscow was converted into the Moskvich automobile plant, which then began assembling copies of Chinese cars under the Soviet brand from kits purchased in Beijing.
In June 2025, there were reports that Renault could start producing drones in Ukraine, after the French Ministry of Defense approached the concern with a proposal. The company itself claimed that the decision had not yet been made. After that, Deputy Prime Minister Denis Manturov said that the possible implementation of such plans would be an “unfriendly action” against Russia and warned that it would also be an obstacle to Renault’s return to Russia, despite the option it had previously signed.
