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Renault approves sale of its Russian assets, gets six year buy back option

Renault approves sale of its Russian assets, gets six year buy back option

Renault approves sale of its Russian assets, gets six year buy back option
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By PTI May 16, 2022 2:34 PM IST (Published)

Renault said its board of directors approved the deal to sell its 67.69 percent stake in Avtovaz, the company making Lada, to NAMI, the scientific research automobile and automotive engine institute of the Russian Federation. However, the agreement provides for a six-year option for Renault to buy back its stake in Avtovaz.

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.

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Renault said Monday its board of directors approved the deal to sell its 67.69 percent 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 said, "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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