Business Unusual in the Supply Chains of Multinational Companies in Period of War : The Case of the French Carmaker Renault Operating in Russia

The Western world – and a good deal of the planet beyond has responded to Russia’s invasion of Ukraine with a mixture of shock and horror. Condemnations of this unprovoked and inexplicable act of aggression have been pouring in from all continents and all shades of the political spectrum. Russia has been condemned in the United Nations Security Council and by an overwhelming vote in the UN General Assembly. There have been massed diplomatic walk-outs even in places, such as the UN Human Rights Council, where Moscow used to find a hearing. Even loyal Putin allies in Western political and business circles have felt obliged to distance themselves from the Kremlin. Whether it is Russian para-Olympians, orchestral conductors, or footballers, no one wants to be seen in their company. In little over a week, Russia has achieved a degree of self-isolation previously only experienced by North Korea. As the history of the Soviet Union in Afghanistan demonstrated, it usually takes an occupying force at least a decade before it realises that the costs of occupation far outweigh the gains and that it is time to head for the exit. In any dictatorship, it takes a long time for elite and public opposition to build and produce an effect. Thus, we are set for a long, drawn-out conflict in Ukraine, especially if the Ukrainians are able to preserve a good portion of their territory, particularly in the west around Lviv, from where they can re-organise and re-equip their army and continue to harass the Russian forces elsewhere in the country. Of course, all this at the moment can only be guesswork, but as the West looks to develop a counter-strategy to Russia, certain elements are already clear. This paper addresses supply chains challenges of multinational companies in a period of war: the case of the French carmaker Renault operating in Russia