Paris (The Times Groupe)- After France decided to leave Russia due to Moscow’s war on Ukraine, Renault’s assets in Russia have become state property, the Industry and Trade Ministry announced on Monday.
The Russian government, the Renault Group, and the Russian Federation signed asset transfer agreements, according to the ministry.
The Moscow government will own 100% of Renault Group’s shares in Renault Russia and its 67.69% shares in AVTOVAZ will become the property of the Russian Federation represented by NAMI (the Central Research and Development Automobile and Engine Institute).
Rostec will retain the remaining shares of AVTOVAZ.
In the agreement, Renault Group has the option to repurchase its interest in AVTOVAZ at various times over the next six years.
“In this way, we will preserve key competencies, the production cycle and jobs,” said Denis Manturov, Russia’s industry and trade minister. The transfer of Renault shares to the state will ensure the controllability of AVTOVAZ and the possibility of the enterprise operating under conditions, sanctions, and restrictions.
In the war against Ukraine, which began on Feb. 24, thousands of people have died, millions have been displaced, and the EU and the US have slapped a wide range of sanctions on Moscow.
In addition, global firms have fled Russia, including those in the technology, automotive, energy, and retail sectors.