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Sanctions against Russia may lead to the shutdown of AvtoVAZ

The head of the Renault Group, Luca de Meo, in an interview with the Financial Times, said that new sanctions against the Russian Federation due to the situation in Ukraine could hit the automotive industry and even lead to a halt in assembly plants.

According to him, the unstable geopolitical situation and the crisis around Ukraine could hit the entire industry and lead to a halt in the assembly lines of the Russian Renault plant and AvtoVAZ, which, as you know, also belongs to the Renault Group. Businesses may suffer from financial sanctions, as well as restrictions on the supply of components from abroad.

At the moment AvtoVAZ and the Renault plant in Russia use from 20 to 40% (depending on the model) of auto components produced in other countries. Interruptions in their supply will cause long downtime for assembly lines.

Luca de Meo said that at the moment the Renault Group is studying alternative supply chains for auto components for the Russian enterprises of the concern.

Sanctions against Russia may lead to the shutdown of AvtoVAZ