The car manufacturer Renault has sold its assets in Russia to the Russian state, the two parties announced separately on Monday, the French group specifying that it retains the option to buy back its shares in Avtovaz, manufacturer of Lada, for six years.
This sale follows the Russian offensive in Ukraine.
“Agreements have been signed for a transfer of the Russian assets of the Renault group to the Russian Federation and the government of Moscow“, said the Russian Ministry of Industry and Trade in a press release.
No financial details provided
Renault has confirmed for its part the sale of its nearly 68% stake in Avtovaz, the main car manufacturer in Russia. But the French group said it would keep the option to buy back its shares for six years.
No financial details were provided on Monday, but Russian Industry and Trade Minister Denis Manturov said in April that Renault planned to sell its Russian assets for “a symbolic ruble“.
“Today we 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 different context“said Renault CEO Luca de Meo, quoted in a statement from the group.
The board of directors of Renault “unanimously approved the signing of agreements to sell 100% of Renault Group’s shares in Renault Russia to the city of Moscow and its 67.69% stake in Avtovaz to NAMI (the Central Institute for Research and Development of automobiles and engines)“, according to this press release, where Renault does not give any amount.