Renault would suspend the operation of its Moscow plant

Renault said on Friday that it would suspend the operation of its Moscow plant next week due to ”forced changes in current logistics routes”.

Production at the Moscow based plant will be shut down between February 28 and March 5.

Renault said that ”increased border controls in transit countries” make it difficult to secure components. The carmaker did not name any countries.

Russia’s largest carmaker Avtovaz said it could suspend some assembly lines at its plant in Togliatti on Monday due to a persistent global shortage of electronic components.

The company declined to comment on the new US sanctions on Russia, saying it was monitoring the situation.

On Tuesday, Avtovaz announced that it was trying to secure alternative sources of semiconductor supplies in the event that US sanctions would lead to the interruption of deliveries to Russia.

Major chip makers say they expect limited supply chain disruptions following the conflict in Ukraine, according to Reuters.

Ukraine is a major producer of neon, a gas used in chip production, supplying more than 90% of the neon used by the United States in semiconductor production.

MUST READ: French unions in Renault have agreed a 2,500 jobs cut

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