French car maker Renault says it has reached an agreement to sell its Russian holdings, including its controlling interest in AvtoVAZ, the maker of Lada vehicles, due to Moscow’s unprovoked war against Ukraine.
Renault said in a statement on May 16 that it is selling its 100 percent stake in Renault Russia to the city of Moscow, while its 67.69 percent interest in AvtoVAZ will be sold to the state-owned NAMI research institute (the Central Research and Development Automobile and Engine Institute), with a provision to buy back that stake “at certain times during the next 6 years.”
“Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group’s performance and our ability to return to the country in the future, in a different context,” Luca de Meo, the chief executive officer of Renault Group said in the statement.
Dozens of major international companies from a broad range of sectors have exited Russia since it launched its invasion of Ukraine on February 24.
Financial details of the transactions were not revealed, but Renault has said it would record a non-cash adjustment charge of $2.3 billion related to Russia in its 2022 first-half results.
Moscow Mayor Sergei Sobyanin said after the announcement that production of passenger cars under the Moskvich brand will resume at the Moscow Renault plant as “we cannot allow thousands of workers to be left without work.”
Russian truck manufacturer KamAZ will become a technical partner at the plant. he said.