Renault Group announced on Monday that it has signed agreements to sell its Renault Russia subsidiary and its stake in the Russian company Avtovaz.
PARIS (Reuters) – Renault Group announced on Monday that it had signed agreements to sell its subsidiary Renault Russia and its stake in the Russian company Avtovaz, in application of the decision of the French car manufacturer to suspend its activities in Russia due to the war in Ukraine.
Renault Group specifies that its board of directors has unanimously approved the sale of 100% of the shares it held in Renault Russia to the city of Moscow, and of its 67.69% stake in Avtovaz to the NAMI (Institut automobile and engine research and development centre).
“The completion of these transactions is not subject to any conditions, and all the required authorizations have been obtained”, indicates the French group in a press release.
The agreement concluded with the NAMI provides for an option by Renault Group to buy back its stake in Avtovaz, exercisable at certain times over the next six years.
“Today, we have made 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 context different,” Renault chief executive Luca de Meo said in the statement.
Avtovaz said at the end of March that he was ready to continue on his own after Renault’s decision to suspend its activities in Russia, while the Russian authorities were considering the future of its Moscow plant.
Western manufacturer most exposed to the Russian market, Renault had declared considering spending a charge of 2.2 billion euros in the first half to depreciate its assets in Russia.
(Written by Tangi Salaün, edited by Matthieu Protard)
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