Renault shares crushed by concerns about automaker's Russia exposure

Shares of Renault, the European automaker most exposed to Russia, tumbled to their lowest close since November 2020 as countries around the world escalate measures to penalize President Vladimir Putin for invading Ukraine.

The company's shares fell 11 percent in Paris trading Tuesday, dropping its market valuation to less than 7.5 billion euros for the first time in almost 16 months. The stock has plummeted 37 percent since Feb. 16.

Russia is Renault's second-biggest market, with the automaker generating about 5 billion euros annually, roughly 12 percent of its automotive revenue, according to Bloomberg Intelligence.

BMW, Mercedes-Benz Group and Volkswagen only have about 2 percent of their sales at risk, BI analyst Michael Dean said in a note last week.

The U.S., UK, European Union and Asian nations have ramped up sanctions against Russia, contributing to a

Renault's Avtovaz venture restarted assembly lines Tuesday at its plant in Togliatti following a brief shutdown due to a shortage of semiconductors, according to a spokesman.

Renault's own plant in Moscow remains idle until March 5 due to supply issues.

A Renault spokesman declined to comment on how sanctions will affect operations.

Russia's war in Ukraine also is leading to ripple effects elsewhere in Europe.

VW will idle some production lines in Wolfsburg next week before a broader shutdown the following week. BMW is being forced to halt production at European plants due to a lack of wire harnesses produced in Ukraine.