Renault shares down after company suspends Moscow plant

A logo of Renault carmaker is pictured at a dealership amid the coronavirus disease outbreak in Brussels, Belgium May 29, 2020. — Reuters pic
A logo of Renault carmaker is pictured at a dealership amid the coronavirus disease outbreak in Brussels, Belgium May 29, 2020. — Reuters pic

PARIS, March 24 — Shares in French carmaker Renault fell on early trade today after the company announced it was suspending operations at its plant in Moscow.

Renault shares were down by around 2 per cent at 0811 GMT, making the carmaker the biggest loser on France’s CAC40 blue chip index.

Renault, the Western carmaker most exposed to the Russian market, also said it would assess options on its majority stake in Avtovaz, Russia’s No. 1 carmaker.

Ukrainian President Volodymyr Zelenskiy on Wednesday accused Renault of financing the war. The foreign minister later in the day welcomed Renault’s move.

“We think this strategic move will shift the attention of investors into the core operations of Renault which have been largely restructured over the past years,” JP Morgan analysts said in a note. — Reuters