How is Russia responding to Western sanctions?

Synopsis

In Togliatti, Russia's famous Lada resumes production after a two-month shutdown, marking the first Lada Granta off the production line since the pause. The vehicle is basic, lacking key safety features such as anti-lock braking systems, airbags, and air conditioning. Car sales in Russia have plummeted by 75 percent since July 2022, following President Putin's military actions in Ukraine, leading to many plants halting production due to a shortage of spare parts. Renault, the majority shareholder in the Russian carmaker Avtovaz, exited the market in March 2022, returning its stake to the state. Despite these challenges, the Russian central bank and the International Monetary Fund have revised their forecasts, indicating that while the economy will contract, the situation is not as dire as initially expected. The outlook remains concerning, but there are signs of resilience in the automotive sector.