Renault will switch its 68 p.c stake in AvtoVAZ to a Russian science institute for a nominal sum, Interfax cited Russian Commerce Minister Denis Manturov as saying on Tuesday.
Renault can have the best to purchase the stake again throughout the subsequent 5 to 6 years, Interfax added, citing Manturov.
He additionally mentioned that Renault’s stake in its Moscow plant can be handed to the town’s native authorities.
Renault, the Western carmaker most uncovered to the Russian market, mentioned final month it could droop operations on the plant amid mounting strain over its continued presence there because the nation invaded Ukraine.
Renault builds three fashions based mostly on the Dacia Duster platform on the Moscow plant.
AvtoVAZ builds Lada automobiles, Russia’s top-selling model, at its personal factories and has about 22 p.c of the native market.
Renault valued its enterprise in Russia at 2.2 billion euros ($2.4 billion) on the finish of final yr. The corporate obtained about 10 p.c of its income from Russia final yr.
Renault first acquired a 25 p.c share in AvtoVAZ in 2008 at a price of greater than $1 billion and regularly elevated its stake, absolutely consolidating AvtoVAZ into its stability sheet in 2017. It invested closely to modernize the huge Togliatti manufacturing facility and replace Lada’s bare-bones fashions.
Bloomberg contributed to this report