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Western governments are set to announce fresh sanctions against Russia after President Putin recognised two breakaway regions in eastern Ukraine, deepening fears of a new war in Europe.
The White House has told the U.S. chip industry to be ready for new restrictions on exports to Russia if Moscow attacks Ukraine.
“Of course we are also investigating possibilities to find alternatives in the case of sanctions,” Nicolas Maure, Avtovaz’s chief executive officer, told reporters in the Russian city of Izhevsk.
Avtovaz, behind the Lada brand, is owned by a Renault-Rostec joint venture, of which the French carmaker owns almost 70%.
Maure did not say how Avtovaz secures chips for its car plants in Russia. Russia lacks its own chip production and relies on foreign supplies, including from China, industry watchers say.
Renault is carefully following the Ukraine security crisis to gauge any effects on its business, a spokesperson for the company said.
“We are following the ongoing diplomatic discussions very carefully,” Rie Yamane, Renault’s corporate external communications manager said in an e-mail to Reuters in response to questions on potential contingency plans for when Western governments introduce sanctions against Russia.
“At this stage, it is premature to estimate what could be the sanctions,” Yamane added.
Avtovaz sells over 90% of its production locally, Yamane said, with the other 10% mainly destined for Commonwealth of Independent States (CIS) countries which include Moldova, Georgia and Kazakhstan. For production, about 80% of Avtovaz sourcing is in Russia, with no export of components.
Last week, Avtovaz reported a 10.4% year-on-year rise in its sales to 2.85 billion euros ($3.23 billion), and an improvement of its margins, as strong price increases and a product mix effect helped it offset the depreciation of the Russian rouble.
($1 = 0.8817 euros)
