Russian assets of French automaker Renault have become state property, the Industry and Trade Ministry said on Monday after France decided to leave Russia due to Moscow's war on Ukraine.
The ministry said asset transfer deals were signed between the Renault Group, the Russian Federation, and the Moscow government.
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).
The remaining shares of the AVTOVAZ concern will be retained by Rostec.
The agreement provides an option for Renault Group to repurchase its interest in AVTOVAZ, exercisable at certain times during the next six years.
"The transfer of a share of the Renault Group to the state will ensure the preservation of the controllability of AVTOVAZ and the possibility of continuing the operation of the enterprise in conditions, sanctions, restrictions. In this way, we will preserve key competencies, the production cycle and jobs,” said Denis Manturov, Russia’s industry and trade minister.
Russia’s war on Ukraine, which began on Feb. 24, has led to thousands of deaths, millions of people being displaced, and a broad range of sanctions on Moscow, in particular by the EU and US.
It has also spurred an exodus of global firms from Russia, ranging from technology to automotive, energy, retail, and various others sectors.