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A $1 Billion Deal With Putin Traps Renault in Russia Quandary

  • Carmaker loses over a third of its market value in two weeks
  • The company and French state have said little on what’s next
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Volkswagen AG, BMW AG and Toyota Motor Corp. have idled Russian plants and suspended shipments to the country as part of a broader retreat by global corporate giants. The one automaker with the most to lose, Renault SA, has remained conspicuously quiet.

The French company has lost more than a third of its market value in two weeks, as Russia invaded Ukraine and was hit with unprecedented economic sanctions. Russia is the second-biggest market for Renault, which is paying a heavy price for the $1 billion deal it sealed in 2007 with a top ally of Russian President Vladimir Putin.