McDonald’s said it had made the decision because of the “humanitarian crisis” in Ukraine and the “unpredictable operating environment” caused by the conflict. The company concluded that maintaining the Russian business “is no longer sustainable” and in line with its values. McDonald’s exit from Russia is a significant step, marking not only the departure of an industry giant, but also a strong emblem of Western capitalism, power and influence, writes Forbes.
Duster under the Lada brand
The Renault Group also announced on Monday that it had completed the sale of its assets in Russia to the Russian state, but said it retained the option to repurchase them within six years. Russian industry officials have announced that the agreement between the French carmaker and Moscow will allow Russia to manufacture Duster under the Lada brand. The Russians also want to revive the Soviet brand Moskvich.
The Renault Group Board of Directors unanimously approved the signing of agreements for the sale of all the shares held by Renault Group in Renault Russia to Moscow and the 67.69% stake in the Russian carmaker AvtoVaz to NAMI (Central Institute of Research and Development of Cars and Engines) ”, the Dacia owner informed in a press release, without providing details related to the amount of the transaction.
Russia will take control of French carmaker Renault’s factories in the country and revive a Soviet-era car brand, Russian officials said Monday, marking the first major nationalization of a foreign business since the start of the war in Ukraine, writes abcnews.go.com.
Moscow Mayor Sergei Sobyan has said the city will bring back the Moskvich brand for cars produced at a factory in Russia’s capital. Moskvich was a major car brand in the Soviet Union, but declined sharply in the 1990s and disappeared from the market in the early 2000s.
Denis Pak, a Russian car industry official, also said that the agreement with Renault would allow AvtoVaz to continue manufacturing Duster, but under the Lada brand.
Renault was the most exposed Western carmaker in the Russian market, as it owned a plant near Moscow as well as the majority stake in AvtoVaz, Russia’s largest carmaker. The French car group estimated at the end of last year that the value of its operations in Russia, its second largest market after the one in France, amounted to 2.2 billion euros.
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