Sanctions in Russia are not a simple matter as large companies such as Renault, VW, and Stellantis have large openings there and will certainly find themselves in an extremely difficult position.

The prospect of severe Western sanctions on Russia will cause severe upheaval in major European carmakers, some of which are largely exposed to Russian territory.

Any sanctions will have a major impact on Renault, VW, and Stellantis, which are heavily active there and have large production facilities in Russia.

The Renault group has the largest exposure, as it has the majority stake in AvtoVAZ, the manufacturer of Lada, which dominates in Russia. The group has two huge factories in Russia with the country’s market being the largest after France.

It is unclear at this time how the sanctions will affect companies, although Iran’s precedent in 2018 has had a significant impact on both the PSA Group and Renault.

Renault’s shares were down 4.2% on Tuesday, while the CEO of AvtoVAZ announced that he is looking for alternative sources for refueling critical components if the sanctions are imposed.

VW and Stellantis are also active in the country, as well as other auto industries that have assembly units. The most important factories are in the city of Kaluga, 180 kilometers southwest of Moscow, which is the center of the Russian car industry.

VW produces the Tiguan and Polo there, along with the Skoda Rapid. It also manufactures Audi Q7 and Q8 engines. Its total production in 2021 was 118,000 cars with an annual capacity of 150,000 units.

VW’s financial interests exceed € 1 billion in its Kaluga plant, which opened in 2007, and over € 2 billion in all its operations in Russia.

The Stellantis Group also has a plant in Kaluga in collaboration with Mitsubishi. Just last month, the company announced that it would start exporting professional vans from the Russian plant. The plant started in 2017 and produces vans under the Peugeot, Citroen, and Opel brands.