Russia Sanctions French Automaker Renault for Producing Drones for Ukraine

Russia has imposed sanctions on French automaker Renault SAS, accusing the company of involvement in producing drones for the Ukrainian military, according to a decree published on the country’s official legal information portal.

The decree places Renault on a list of foreign companies engaged in military-technical cooperation, which are now subject to “special economic measures” in response to what Moscow calls “unfriendly actions” by certain states and corporations.

Under these measures, all transactions involving Renault in Russia are prohibited, including foreign trade contracts, payments benefiting the company, and securities transactions. It also restricts Russian entities from fulfilling obligations to the company under existing contracts.

The blacklist, first compiled in May 2022, targets companies connected to countries supporting Ukraine. German truck manufacturer Daimler Truck AG was added to the list in June.

Renault has had a long presence in Russia, starting to enter the market in the early 1990s and subsequently gaining full ownership of its Russian subsidiary, Renault Russia CJSC. Following the beginning of Russia's military campaign in Ukraine in 2022, Renault sold its assets there to the state for one ruble, while keeping a six-year option to buy them back. The Moscow factory, which was previously owned by Renault, was subsequently transformed into the Moskvich car factory, manufacturing cars from Chinese kits.

Reports in June 2025 suggested Renault might begin producing drones in Ukraine after being approached by the French Ministry of Defense. The company stated at the time that no final decision had been made. Russia’s Deputy Prime Minister Denis Manturov later warned that any participation by Renault in Ukrainian drone production would be viewed as an “unfriendly act” and could permanently block the company’s re-entry into the Russian market.