Renault sells all its shares in Russian carmaker AvtoVAZ, reports the French automaker on Monday† They go to NAMI, a research institute owned by the Russian state. Two-thirds of AvtoVAZ was owned by Renault. AvtoVAZ is the largest car manufacturer in Russia and produces, among other things, Lada’s. Renault also sells all its shares in its Russian branch to the city of Moscow.
The company spoke on Monday of a “difficult but necessary” decision, which was made because of the 45,000 employees in the country. Despite the sale, the French carmaker is keeping the option open in the future, “in a different context”. The company will have the option to repurchase the sold shares in AvtoVAZ within six years. Russia is the second largest market for Renault after France.
The company stopped production in Russia in March because of the war in Ukraine. That decision followed a speech by Ukrainian President Volodymyr Zelensky in the French parliament, in which he accused French companies in Russia of sponsoring the “Russian war machine”. More companies are trying to get rid of their Russian branch. For example, it was announced last week that Shell has sold 411 gas stations and a factory to the Russian oil company Lukoil.
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