PARIS, May 16 (Reuters) – Renault said on Monday it had signed agreements to sell its Renault Russia subsidiary and its stake in Avtovaz, following the French carmaker’s decision to suspend operations in Russia due to the war. in Ukraine.
In accordance with General Manager Luca de Meo’s wish not to “insult the future” either by keeping the door open for a return to Russia when the situation returns to normal, the diamond group also announced in a press release that it has an option to buy back its shares in Avtovaz, exercisable at certain times over the next six years.
Renault said its board of directors had 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, the leading car manufacturer Russian, at NAMI (Central Automotive and Engine Research and Development Institute).
“The completion of these transactions is not subject to any conditions, and all required authorizations have been obtained,” he said in a press release.
“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,” 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 plans to spend a charge of 2.2 billion euros in the first half – 2.3 billion including the banking activity RCI Banque – to depreciate its assets in Russia.
According to two sources familiar with the matter, the sale of Renault Russia and the stake in Avtovaz was concluded for a symbolic ruble in both cases.
But Luca de Meo had stressed in April that he was looking for “a long-term solution, which makes it possible to protect our assets and our employees and in fact not to completely insult the future, because life is progressing and we hope that the situation on the ground returns to normality.” (Written by Tangi Salaün, edited by Matthieu Protard and Kate Entringer)