Feb 20 (Reuters) - Encouraging foreign brands to return

to Russia would be "ill-advised," according to the industry and

trade ministry, which wants to champion domestic companies that

have stepped in to fill the gaps left by departing Western

counterparts.

More than a thousand companies, from McDonald's to

Mercedes-Benz, left Russia in the last three years by

selling, handing the keys to existing managers, or abandoning

assets.

Others like Danone and Carlsberg had

their assets seized and a sale forced through.

But as Moscow and Washington discuss a path to end the war

in Ukraine, one of the many questions on investors' minds is

whether the corporate exodus from Russia, triggered by the

February 2022 invasion of its neighbour, may be reversed.

"The Ministry of Industry and Trade considers it ill-advised

to stimulate the return of foreign brands," it said in a

statement to Reuters on Thursday.

"In the last three years, domestic companies have

significantly increased their own production and actively

occupied market niches vacated after the exit of foreign

companies."

Russian businesses have been successfully importing

requisite goods through indirect means, the ministry said, and

its absolute priority was protecting domestic producers and the

production of high-quality products on Russian soil.

French automaker Renault, which agreed a six-year

buyback option when selling its majority stake in Russian

carmaker Avtovaz in May 2022, on Thursday said the probability

of activating its clause with Avtovaz was "very, very low."

"If any foreign company decides to return to the Russian

market, then this issue should be considered on an individual

basis," the ministry said.