Renault SA, the Western carmaker, said it would suspend operations at its plant in Moscow while it assesses options on its majority stake in Avtovaz , the country's No. 1 carmaker.
"Renault Group reminds that it already implements the necessary measures to comply with international sanctions," the company said.
The French carmaker on Wednesday revised its operating group margin to around 3% from at or above 4% in 2022 and adjusted its automotive cash flow outlook to "positive" from a previous estimate of 1 billion euros ($1.10 billion) or above.
Renault derives 8% of its core earnings from Russia, according to Citibank, mainly through its 69% stake in Avtovaz, which is behind the Lada car brand.
According to two sources close to the matter, Renault's board of directors considered different scenarios but decided for the time being to maintain a presence in Russia.
After resuming Russian production earlier this month, the company announced a further partial shutdown at its Togliatti and Izhevsk sites this week, citing shortages of electronic components.
Its Russian operations last year accounted for almost 20% of total group volume, but Renault Chairman Jean-Dominique Senard said on March 10 that the crisis was unlikely to threaten the French carmaker's recovery.
Renault said on Wednesday it will quantify the value of assets affected by the decision on the Moscow plant when it releases half-year results. Last year those assets stood at 2.2 billion euros ($2.42 billion), the company said.
