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Amid Russo-Ukrainian War, Renault Russia Resumes Production

Western companies and totalitarian regimes are old friends. Despite their differences, money is their only common denominator. France, for example, owns a 15.1-percent stake in Groupe Renault, the French automotive colossus that has gingerly resumed production in Russia.
Renault Moscow Plant 6 photos
Photo: screenshot from Groupe Renault on YouTube
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The Guardian reports that Renault has resumed manufacturing in Moscow, which is nothing more than a financial-driven business decision. But on the other hand, the blood-stained money that Renault hopes to squeeze out of Russia comes at a high price for the French automaker's public perception.

With the French government’s blessing, Renault is bucking the trend of companies that have abandoned the Russian Federation over the war on Ukraine. Worse still for the République Française and Renault, resuming production in Russia goes against Emmanuel Macron’s stance on the war.

Designated as a special military operation by the madman in the Kremlin, the bloodshed has taken the lives of 15,000 Russian troops, according to the Ministry of Defence of Ukraine. The Office of the High Commissioner for Human Rights has recorded 2,421 civilian casualties in the eighth-most populous European country, split between 925 killed and 1,496 injured.

France and Renault should also be aware that Russia’s aggression has displaced ten million from their homes in Ukraine, according to the United Nations. Considering that Renault owns a two-thirds stake in Avtovaz since 2016, the French automaker is heavily invested in its Russian operations. Avtovaz didn’t sell too many vehicles in 2021, but it still made €186 million in profits before tax for Renault, which is roughly 12 percent of earnings.

More than 400 companies have withdrawn from Russia since the start of the Russo-Ukrainian War on February 24th. Companies that indirectly support the senseless killing by paying taxes in Russia include retail groups Auchan and Metro, banking heavyweights BNP Paribas and Société Générale, home improvement retailer Leroy Merlin, cosmetics firm Oriflame, consumer products giant SC Johnson, as well as the peeps at Emirates Airlines.

Earlier today, Ukrainian president Volodymyr Zelensky has called out Nestlé as the world keeps watching the horrors of the war unfold. One of the most hated companies in the world, Nestlé hasn’t really condemned Russia for its aggression. A spokesperson told the media that “we do not make a profit from our remaining activities," which is BS considering that Nestlé wouldn’t have stayed if the revenue generated by its products wouldn’t be greater than the cost incurred to produce and sell those items.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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