The Moscow city government is to take over a factory belonging to the French carmaker Renault and use it to revive the Soviet-era Moskvitch in Russia’s first major nationalisation of a foreign company during its war in Ukraine, reports The Guardian.
The development, which was met with ridicule by Russians with long memories, follows Renault’s decision to join the wave of western companies such as McDonald’s and Siemens leaving the Russian market as the war in Ukraine nears its fourth month.
Renault has ceded its 68% stake in Russia’s biggest carmaker, AvtoVAZ, with an option to buy it back within six years. According to media reports, the company’s Russian assets were sold for one rouble, meaning the city of Moscow has effectively taken control of the factory free.
Renault’s CEO, Luca de Meo, said in statement that the company was protecting its future business in Russia. “Today we have taken a difficult but necessary decision, and we are making a responsible choice towards our 45,000 employees in Russia while preserving the group’s performance and our ability to return to the country in the future.”
Hawkish commentators such as the head of Russia Today, Margarita Simonyan, have said foreign companies that leave the Russian market should have their local assets seized. Moscow’s mayor, Sergei Sobyanin, appeared to defend Renault’s decision and said the city would take over the factory to prevent unemployment.