A deal with a Putin ally leaves automaker Renault trapped in Russia

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 silent.

The French company has lost nearly 30% of its market value in the wake of Russia’s invasion of Ukraine and ensuing economic sanctions. Russia is Renault’s second-biggest market, and it’s paying a heavy price for a $1 billion deal sealed in 2007 with a top ally of Russian President Vladimir Putin.

Renault’s majority control of AvtoVaz, the Soviet-era maker of Ladas, and reliance on Russia for about 12% of its revenue are now matters of investor concern. Cutting ties with the venture would come at a tremendous cost, and prospects for a broader economic slump across Europe risk derailing its already-tenuous turnaround efforts.