This decision comes two months after the French car manufacturer announced the cessation of its activity in Russia after the invasion of Ukraine.
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Renault is withdrawing from the Russian market for good. Two months after having suspended its activities in response to the war in Ukraine, the car manufacturer announced on Monday, May 16, that its assets were now the property of the Russian state. “Renault Group’s Board of Directors has unanimously approved the signing of agreements to sell Renault Group’s 100% stake in Renault Russia to the city of Moscow and its 67.69% stake in AvtoVAZ”he said in a press release, without confirming any amount.
“Today, we have taken 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”Renault chief executive Luca de Meo said in the statement.
The group nevertheless clarified that it would keep the option to buy back its shares until 2028: “The agreement provides for an option for Renault Group to buy back its stake in AvtoVAZ”, which manufactures Lada brand cars, “exercisable at certain times over the next 6 years”. Russia was until recently Renault’s second largest market behind France.