The Russian Automobile Dealers Association (ROAD) has asked Renault, the French auto giant, for compensation of 8.5 billion rubles (about $110 million) for its exit from the Russian market, RIA Novosti reports Thursday.
According to ROAD president Alexei Podshchekoldin, the association sent a proposal to Renault last Tuesday, urging them to reach an agreement to compensate Russian dealers for losses caused by their exit from the Russian market due to anti-Russian sanctions. Podshchekoldin stressed that this is the second attempt to reach a consensus.
The association believes that accepting the proposal would be the best solution, given the level of loyalty to the French brand on Russian territory, where more than 2.2 million Renault cars were sold over the past 20 years, and due to the positive experience of many years of cooperation.
However, if an agreement is not reached, dealers are ready to resort to Russian courts, which could affect Renault’s reputation and hinder the brand’s return to the Russian market, the association warns.
In May last year, Renault officially left the Russian market due to sanctions related to the conflict in Ukraine, and its assets became state-owned. The company’s factory, founded in 1930 in Moscow and originally known for producing Moskvich cars in Soviet times, was acquired by Renault in the early 2000s and suspended production of the Moskvich.
The demand for compensation by Russian dealers reflects the economic and commercial impact of international sanctions on the automotive sector and highlights the challenges faced by foreign companies operating in markets affected by restrictive measures. The outcome of this dispute will have implications for both Renault and dealers in Russia.
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