McDonald’s isn’t the only company leaving Russia over the war in Ukraine as the Renault Group has signed an agreement to sell 100% of its stake in Renault Russia to the city of Moscow. The company is also selling its 67.69% stake in AvtoVAZ to NAMI (the Central Research and Development Automobile and Engine Institute).
However, the company isn’t making a clean break with AvtoVAZ as the agreement gives Renault the option of buying back its stake at “certain times during the next six years.” As a result, if cooler heads prevail and sanctions on Russia are eliminated, it’s possible Renault may exercise that option in the future.
In a statement, Renault Group CEO Luca de Meo said “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.”
Also Read: Renault Set To Sell AvtoVAZ To Russian Science Institute For Just Over 1 U.S. Cent
The move is a setback for Renault but, given the conflict and sanctions, the company’s options were limited. The automaker also noted a “non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment and goodwill of the Group in Russia should be recorded in the 2022 first half results. As of December 31, 2021, this value amounted to 2,195 million euros ($2.3 / £1.9 billion).”
Previous reports have suggested AvtoVAZ was sold to NAMI for a single ruble, which is the equivalent of $0.015 (£0.013 / €0.015). That’s a bittersweet end for Renault’s ownership of Lada, although the door remains open for a possible return in the future.
