French Car Maker Renault Sells Off All Russian Assets and Withdraws

[Image source=Yonhap News]

[Asia Economy Reporter Choi Dong-hyun] French automobile manufacturer Renault has reportedly sold all its shares in its Russian subsidiary to the Russian side and withdrawn due to the impact of the Ukraine crisis.

On the 16th (local time), according to the Russian state news agency TASS, Renault transferred 100% of the shares of its Moscow automobile plant 'Renault Rossiya' to the city of Moscow. It also handed over 68% of the shares of the local Russian automobile company 'Avtovaz' to the Russian state automobile development research institute 'NAMI'. As a result, TASS explained that all of Renault's assets have been disposed of to the Russian government.

However, it is reported that the transaction conditions include an option for Renault to repurchase shares of Avtovaz within the next six years. Denis Manturov, Russian Minister of Industry and Trade, stated, "This share transfer will enable the continued operation of Avtovaz and the continuation of business activities under the sanctions situation," adding, "We will preserve the production process and jobs."

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