- Renault’s former Russian partner said the car manufacturer may need to pay $ 1.3 billion to restore the market.
- Renault came out of Russia in 2022, selling its assets for 1 rubles between Western sanctions.
- Foreign firms face challenges returning to Russia, with possible compensation requirements.
Renault came out of the Russian market in 2022, selling his assets for a single ruble.
Now, the French manufacturer may need to pay 112.5 billion rubles – about $ 1.3 billion – if he wants to return after the war, said her former Russian partner Avtovaz. Definition is a sign that foreign firms seeking to return to the market can face high compensation demands.
In the case of Renault, Maxim Sokolov, CEO of Avtovaz, said that the Russian company and state had invested 112.5 billion rubles in business since its exit until 2025.
“It is clear that these investments will have to be reimbursed somewhat after return,” Sokolov said, according to the TASS state news agency.
US President Donald Trump has signaled a willingness for the US to agree with Moscow, prompting recent discussions about a return of Western businesses – such as Renault – in the market.
In 2022, Renault sold 67.6% of his shares in Avtovaz in the Russian state with Option to buy its assets within six years. The motorist received a 2.2 billion-Euro Writing from the exit from the market that was the second largest, after France.
A Renault spokesman told Business Insider that the company did not “foresee a short -term change” about returning to business in Russia. The company did not comment on Sokolov’s statements.
David Meshimi, an associate professor of political science and international affairs at George Washington University, told Bi that Sokolov’s comments on compensation should be taken seriously, even if Russian officials were also posting.
The emergence of foreign businesses created a home winner in Russia, some of whom received assets at fire sales prices.
“The free allowance of foreign companies will reduce the course of their profit and make life much more competitive, so if that happens, Russia wants some kind of compensation for its market liberalization,” said Emergyi, who is a specialist in Russia’s political economy.
‘Even safer, even more brave’
Sokolov’s comments echo to others in Russia recently signaling difficult negotiations for removed companies wanting to return.
Anton Alikhanov, the Russian industry and the Minister of Trade, told reporters on Thursday that Russia “was not waiting for anyone with open wings” and that there would be “a price to pay past decisions”.
Emergyi said Russia is likely to continue with a “soft rhetoric” between its approach to Sh.BA
“He feels that he survived almost the worst that the West could throw into it and continued through that calamity and now it is even more secure, even more embedded, to make demands in the West and dictate the conditions of political and economic agreements going forward,” he added.
Three years in the war in Ukraine, 475 foreign companies have completely removed from the Russian market, according to Russia’s Russia database from the Kyiv School.
McDonald’s fast food giant and Starbucks coffee chain were two high -profile brands that left the market, with their assets purchased by Russian businesses. McDonald was reprinted to “enjoy and that’s it” and Starbucks became coffee stars.
Western companies are not gathering to return to Russia
Although Russia is a big market, analysts have recently said that businesses are likely to be careful to return to the country, even if sanctions are removed.
The wartime economy in Russia is facing problems including high inflation, currency instability and high interest rates in the sky. President Vladimir Putin’s iron reign presents concerns about the rule of law and security.
“While Russia says it is open to doing business again, it did not actually signal any change of tone or politics,” said Emergyi, who added that most of Moscow’s rhetoric was likely to aim at the Trump administration’s appetite to make agreements.
Investors are also likely to be careful after a wave of corporate nationalization and seizures of assets in recent years that redistributed the company’s international property in the state and Russian oligarchs.
Emergyi said Russia had proven that protection of business property rights, investors’ guarantees and a welcoming business climate were things of the distant past.
“Without them in the country, I see no reason why Western companies would again endanger Russia as such an unstable, unpredictable regime,” he said. “Has proven that she does not care about property rights and speaks from both sides of her mouth and is unreliable.”