Renault’s factory in Algeria halts due to import restrictions

The Renault factory in Algeria’s Oran has come to a halt after Algerian authorities banned imports of key parts from Spain, a ban highlighting that the Algerian regime is ready to pursue political goals at the expense of the economy.

Since Spain ended its double-speak on the Sahara issue by expressing full support to the Morocco-proposed autonomy plan, Algeria retaliated by reducing the amount of gas it exports to the Iberian Peninsula and ordering business to shun importing from Spain.

The Oran Renault factory was a collateral in Algeria’s economic blackmail against Spain which supplied gearboxes.

According to El Khabar, the factory can only continue operating by importing these gearboxes from Brazil at a higher cost.

The factory shut down in 2020 when Algeria banned imports of key parts used in assembly as Algeria’s reserves were decreasing due to a sharp drop in gas and oil prices.

Renault’s ordeal reflects that the Algerian regime has no predictability and that political crises can easily spill over to self-defeating economic blackmail, adding to the country’s unattractiveness to foreign investors.