Renault Estimates Losses From Leaving Russian Market at $2.3 Billion

MOSCOW (Sputnik) - French car manufacturer Renault reported on Friday a 2.3 billion euro ($2.36 billion) net loss for the first six months of 2022 in connection with its decision to leave the Russian market.

"Net income from discontinued operations at -€2.3 billion due to the non-cash adjustment related to the disposal of the Russian industrial activities announced on May 16, 2022," Renault said in a report. 

In May, Renault made the decision to sell all its shares in Renault Russia to the City of Moscow and its 67.69% stake in AVTOVAZ to NAMI (the Central Institute for Research and Development of Automobiles and Engines).

In the first half of 2022, the group's revenue stood at 21.1 billion euros, which is 0.3% higher than the same indicator last year, which stood at 21.05 billion euros. The net income from continuing operations was 657 million euros in 2022.

The total number of the group's cars produced in the first six months of 2022 was 348,000 (versus 427,000 at the end of June 2021).

The group's worldwide sales amounted to 1,001,109 units in the first half of 2022, which is 11.9% lower than the year-on-year indicator. The majority of Renault's car output is targeted at the domestic market (214,607 units) and the top largest exporters are Italy (74,108), Germany (72,699), Turkey (67,249), Brazil (53,232).

Renault also estimated that by the end of the year, due to the shortage of semiconductors and the shutdown of activities in Russia, the company will see a fall in production by 300,000 units.