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French car company Renault sells all assets in Russia

Renault holds a 68% stake in AvtoVAZ, Russia’s largest car company with the country’s leading brand Lada, and decided to sell all of its assets in Russia.

French car company Renault sells all its assets in Russia - photo 1

Renault factory site in Moscow, Russia

renault corporation

AFP news agency on May 16 reported that the French car company Renault sold part of its assets in Russia to the Russian government, in the context of foreign companies leaving after Russia did special military campaign in Ukraine.

Renault holds a 68% stake in AvtoVAZ, Russia’s largest car company with a leading national brand Ladabut facing pressure to leave amid Russian-Western tensions.

Thanks to AvtoVAZ, Russia became Renault’s second largest market after Europe last year, with nearly 500,000 vehicles sold.

According to a statement by the Ministry of Industry and Trade of Russia, an agreement has been signed on the transfer of the assets of the Renault Group to the Russian Federation and the Moscow authorities. Accordingly, Renault reserves the right to buy back shares of AvtoVAZ within 6 years. The deal includes Renault’s plant in Moscow.

Details of the exact amount were not clear, but Russian Trade and Industry Minister Denis Manturov said in April that Renault intends to sell its assets in Russia for “a symbolic one ruble”.

“We made a difficult but necessary decision today, and we have the option of taking responsibility for our 45,000 employees in Russia, while maintaining our operations and the possibility of the group returning to the country in the future, in a different context,” said Renault CEO Luca de Meo.

For his part, Moscow market Sergei Sobyanin said that Renault decided to close the plant in the Russian capital. He said he would restore passenger car production under the Soviet-era Moskvich brand.

Moscow says West is waging “all-out mixed war” against Russia

In another development, the US and the European Union (EU) expressed their desire to jointly look at the semiconductor supply chain disruption, as well as deal with the disinformation campaign from Russia.

Top US officials are visiting the Sacklay science center in France for a meeting of the Chamber of Commerce and Industry Technology EU – US. The two sides are expected to announce an “early warning system” on semiconductor supply disruptions, hoping to avoid competition between European countries.

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