Renault is the Western automaker most exposed to Russia, where it generates 8 percent of its core earnings, according to Citibank, mainly through its 69 percent stake in AvtoVAZ, which owns Lada, Russia's top-selling car brand.
With its AvtoVAZ subsidiary, Renault has about 30 percent of the Russian car market and a staff of 45,000 in the country.
The value of the venture has fallen to zero due to long-lasting implications that Western sanctions could have on the Russian economy, possibly drastically reducing car demand in the country for years, analysts Alphavalue said.
Renault slowed output at its Moscow factory after the invasion. Two other factories operated by AvtoVAZ at Togliatti and Izhevsk have mostly been shut due to shortages of components.
AvtoVAZ’s other partner, Rostec, a Russian government-owned defense conglomerate, is headed by Sergey Chemezov, a close Putin ally who is on the U.S. list of sanctioned individuals.
The retreat from Russia deals yet another blow for Renault, which has been beset by a series of crises that began in 2018 when the arrest of former leader Carlos Ghosn nearly unraveled its partnership with Nissan.
The company relied on a government-backed loan to get through the worst of the pandemic and has been hit hard by the subsequent global semiconductor shortages.
The automaker’s shares have dropped by more than a quarter since the Russian invasion of Ukraine began on investor concern about its exposure to the market.
Bloomberg contributed to this report