It has taken a month, but the Renault Group has finally shuttered – for now – operations in Russia, partly due to political pressure, partly because sanctions have bitten and the requisite parts to finish cars have become harder to source.
It remains to be seen how Russian president Vladimir Putin will respond. He has threatened to nationalise any Western business that refuses to continue operations in what is now regarded as a pariah state.
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"....reluctance to shut off a potential profit centre is understandable."
Is it?
Loads of other companies, large and small, in all sorts of sectors of the economy, have made this type of decision immediately. Compromising your profitability is nothing compared to what the Ukranian people are going through.
I went to Tolyatti a couple of years ago, sweet Jesus, if that had already been modernised then I cant imagine what it was like before. Even stayed at the Lada resort on the banks of the Volga. All I will say is that it was aligned with the general brand values...