Renault has announced that it has signed an agreement to sell its entire 100 per cent stake in Renault Russia along with its controlling stake in Russian firm Avtovaz. The company said that Renault Russia would be turned over to Moscow City entity while its entire stake in Avtovaz would be turned over to NAMI (Russia's Central Research and Development Automobile and Engine Institute).
“The closing of these transactions is not subject to any conditions, and all required approvals have been obtained,” the company said in a statement.
"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 different context. I am confident in the Renault Group's ability to further accelerate its transformation and exceed its mid-term targets," said Luca de Meo, CEO Renault Group.
Renault Group to sell complete stake in Renault Russia and its entire stake in Avtovaz.
While Renault has given away its entire stake in its Russian operations, the company has retained the option to buy back its 67.69 per cent stake in Avtovaz. The company says that the buyback is exercisable at certain times over the next 6 years.
Renault said that in line with its decision from March 23, the company would record a non-cash adjustment charge amounting to the accounting value of its entire Russian operation including assets, equipment and goodwill in its financial results for the first half of 2022. The company's Russian operations would then be deconsolidated in the Group's consolidated financial statements for the period ending June 30.
The entirety of Renault's Russian operations was valued at 2,195 million euros as on December 31, 2021.
