Russia ‘invading’ France: Moscow’s decision after Renault flight

After Renault announced its exit from the Russian auto market this week, here’s what happens

The foreign owner decided to close the Renault plant in Moscow. He has the right to do this, but we cannot allow thousands of workers to become unemployed.” This is what the Mayor of Moscow, Sergei Sobyanin, announced. Here is what is happening in Russia.

Russia Mechanism (web source)

In fact, Renault decided to leave Russia. We do not know if the global geopolitical situation influenced this decision by the French automaker. Indeed, on February 24, Vladimir Putin’s Russia decided to invade neighboring Ukraine. Since that time, now more than three months of death and destruction.

But also the economic consequences. Not only in relation to the energy crisis. But also wheat. And then the increases in petrol and diesel that we’ve seen and experienced in recent weeks. In short, the conflict in Ukraine leads to very serious consequences also from an economic point of view.

Sanctions against the Russian oligarchs are now known. The empires of billions and billions were confiscated in retaliation from Europe and the United States for the policy of conquest of Moscow. But also important brands, from any sector, decided to leave Russia. Including Renault. But The French automaker’s farewell could open the doors to an exciting comeback.

The return of the giant of the Soviet Union

After Renault announced its exit from the Russian auto market this week, The mayor of Moscow announced that the plant will be used to restart the Soviet-era Moskvich car brand.

Historic Moskvich Brand Reborn (Wikipedia) 26.5.2022 quattromania
Moskvich Historic Mark Reborn (Wikipedia)

Little is known outside the former Soviet Union and its satellite states, Moskvich was founded around 1930 and operated until 1991, but it always had quality problems.. However, this did not prevent the Soviet government from entering into an agreement with Renault to modernize the plant. According to the specialized agency Autostat, there are still about 200,000 Moskvich cars registered in Russia, of which 46,000 are over 35 years old. Production ended when the Soviet Union disintegrated and Western automakers, such as Renault, moved there.

Part of the former Moskvich plant reopened in 2005 as a joint venture between Renault and Moscow. Now the mayor of Moscow, Sergei Sobyanin, wants to revive the great Mother Russia: “I made a decision to register the plant as a supplier for the city and resume production of cars with the historic Moskvich brand. In 2022, we are turning a new page in the history of Moskvich,” Sobyanin added.

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