Renault’s activities in Russia are now under state control. The French company, which over the last few years had invested heavily in the country, was forced to sell its assets to Russia. The confirmation came directly from a note from the Russian Ministry of Industry. Here are the details:
Renault says goodbye to Russia
Russia now controls 100% of the shares of Renault Russia. Meanwhile, the 67% of the shares of AvtoVaz, reference company for the local market and manufacturer of Lada models, have been transferred from Renault to the Russian state. The company will be managed by the local NAMI. According to estimates, Renault’s assets in Russia were worth more than € 2 billion.
It should be noted that for the next 6 years a particular “repurchase” option will be active. Renault will therefore be able to repossess its Russian assets by exercising this option. At the moment, the conditions of this particular buy-back right are not clear which, as anticipated by Renault, will only be exercised in a “different context” than the current one.
The CEO’s comment
Luca de Meo, CEO of Renault, declares: “Today we made a difficult but necessary decision; we are making a responsible choice towards our 45,000 employees in Russia, preserving the Group’s performance and our ability to return to the country in the future, in a different context “