Cornered by Western sanctions on Russia, French automaker Renault confirmed on Monday that it has sold its assets in the country to the Russian state. This is the first nationalization of a multinational company since the beginning of the attack on Ukraine.
“The Renault Group board of directors unanimously approved the signing of agreements on the transfer of 100% of the Renault Group’s shares from Renault Russia to the city of Moscow and its 67.69% stake in Avtovaz to NAMI (Central Institute for Research and Development Automobiles and Motors) ,” the automaker said, without reference to financial details.
“The agreement provides an option to purchase Groupe Renault’s stake in Avtovaz, which it can use at certain periods over the next six years,” the document said.
Hours later, the French Ministry of Industry and Trade confirmed the information. “Agreements have been signed for the transfer of the Russian assets of the Renault group to the government of Russia and Moscow,” the statement said.
second largest market
Last year, Russia was the group’s second largest market after the European Union, with nearly half a million vehicles sold.
The transfer to the city of Moscow includes the Renault factory near the capital, which produces vehicles of the Nissan brand. The mayor, Sergei Sobianin, announced that the factory will reactivate the Soviet brand Moskvich.
The French automaker said in a statement on March 23 that it would add a corresponding adjustment to the value of these assets when it suspended operations in Russia due to the invasion of Ukraine.
“We made a difficult but necessary decision today, and while we make a responsible choice for our 45,000 employees in Russia, we protect the group’s performance and our ability to return to the country in the future in a different context,” said the Renault executive. said. Director Luca de Meo said in a statement.
Renault joined Avtovaz, which made Lada in 2008, and became a majority shareholder in 2014 under former CEO Carlos Ghosn.
*with information from AFP
source: Noticias
