- The former Renault partner in Russia said the French car maker may need to pay $ 1.3 billion to re -enter the market.
- Renault came out of Russia in 2022, where its origins were sold for one rubles amid Western sanctions.
- Foreign companies are facing challenges to return to Russia, with possible compensation demands looming on the horizon.
Renault came out of the Russian market in 2022, when its assets were sold for one ruble.
Now, the French car maker may need to pay 112.5 billion rubles – about $ 1.3 billion – if he seeks to return after the war, her former Russian partner said. The condition is a sign that foreign companies looking to return to the market may face high compensation requirements.
In the case of Renault, Maxim Sukolo, CEO of Avtovaz, said that the company and the Russian state have invested 112.5 billion rubles at work from its exit until 2025.
Sukolov said, according to Government News Agency TASS.
US President Donald Trump has pointed out that the United States is ready to reconcile with Moscow, which sparked recent discussions about a possible return for Western companies – such as Renault – to the market.
In 2022, Renault sold its 67.6 % stake in Atovaz to the Russian state with Option to restore its assets within six years. The auto company took 2.2 billion euros It was seen out of the market, which was the second largest, after France.
A spokesman for Renault told Business Insider that the company “does not expect any change in the short term” when it comes to returning to work in Russia. The company did not comment on the Sokolov data.
David Skoni, Associate Professor of Political Science and International Affairs at George Washington University, told Business Insider that Sukolov on compensation should be taken seriously, even if Russian officials are also acting.
The exit of foreign companies created winners at home in Russia, some of whom chose assets at fire -selling prices.
“Allowing freely to return to foreign companies is due to reducing its profit flows and making life more competitive, so if that will happen, Russia wants a kind of compensation for the liberalization of its market,” said Ziconi, a political economy in Russia.
“More confident, even more encouraged”
Sucolov’s other comments in Russia, which recently indicates difficult negotiations for departure companies that want to return.
Anton Alejhanov, Russian Minister of Industry and Trade, told reporters on Thursday that Russia “is not waiting for anyone with open arms” and that there will be “a price to pay against previous decisions.”
Ziconi said Russia is likely to continue with such a “arrogant speech” amid its rapprochement with the United States.
He added: “It is a feeling that it has survived the worst that the West could throw and persevere through this adversity and is now more confident and more encouraged, to provide demands in the West and dictate the conditions of political and economic deals to move forward.”
After three years of war in Ukraine, 475 foreign companies have completely left the Russian market, according to the Russian leave database from Kiev Economics College.
Starbucks giant for fast food and Starbucks coffee chain was two high -level brands that left the market, with their assets bought by Russian companies. McDonald’s has been renamed into “delicious and this is all” and Starbucks became the coffee of the stars.
Western companies are not calming to return to Russia
Although Russia is a large market, analysts recently said companies are likely to be cautious about returning to the country, even if the sanctions were lifted.
The economy in wartime in Russia has problems including high inflation, currency fluctuation, and high interest rates in the sky. The reign of President Vladimir Putin is aimed at the sovereignty of law and safety.
“While Russia says it is open to doing business again, it did not actually refer to any change in the tone or politics,” said Zawkouni, who added a lot of Moscow’s speech. It has not actually indicated any change in the tone or politics, “which added that many Moscow’s speech probably aims to appeal to the Trump administration to conclude deals.
Investors are also likely to remain cautious after a wave of nationalization of companies and origins in the past few years, which have been redistributed by the company’s international wealth to the Russian state and the Oligarshin.
Szakonyi said Russia has proven to protect commercial property rights, investor guarantees, and a hospitable business climate among distant things.
“Without them in place, I do not see any reason for the danger of Western companies again with Russia as an unpredictable volatile system,” he said. “He has proven that he does not care about the rights of property and that he is talking about both sides of his mouth and not trustworthy.”
