Renault approves sale of its Russian assets

AP , Monday 16 May 2022

French carmaker Renault says it is selling its Russian branch to Moscow City and its stake in Russian company Avtovaz to a local state-owned institute.

File Photo: French Renault Group logo in front of the automobile plant in Moscow. AP


Renault said Monday its board of directors approved the deal to sell its 67.69% stake in Avtovaz, the company making Lada, to NAMI, the scientific research automobile and automotive engine institute of the Russian Federation.

The agreement provides for a six-year option for Renault to buy back its stake in Avtovaz.

The CEO of Renault Group, Luca de Meo, called it ``a difficult but necessary decision.''

He says ``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.''

In March, Renault said it would pause production at its Moscow plant amid mounting criticism of its foothold in the Russian Federation.

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