Renault Group Assets in Russia Went Under Full Russian Control

The Russian assets of the Renault Group, including the French concern’s stake in AvtoVAZ and the Moscow automobile plant of Renault Russia CJSC, are being transferred to state ownership. This was reported by the press service of the Ministry of Industry and Trade of the country. 

Picture: SdelanoUNas

It is reported that agreements have already been signed on the transfer of 100 per cent of the shares of Renault Russia CJSC to the government of Moscow and 67.69 per cent of AvtoVAZ shares to the Russian state. The remaining shares of the Russian automaker will be retained by Rostec State Corporation. Both transactions have been approved by the Federal Antimonopoly Service.

It is specified that Renault will have an option to repurchase its stake in AvtoVAZ, which can be implemented over the next 6 years.

“The transfer of the Renault Group’s share to the state will ensure the preservation of AvtoVAZ’s manageability and the possibility of continuing the company’s work under sanctions restrictions. This way we will preserve key competencies, the production cycle and jobs,” the Minister of Industry and Trade of Russia, Denis Manturov, said.

The Minister also positively assessed the prospects for the state’s participation in the management of AvtoVAZ, noting that the current assets’ holder, NAMI (Central Research Automobile and Automotive Institute), has significant experience in the automotive industry and has a modern research, experimental and production base.

“The competitiveness of the design and engineering team of NAMI is confirmed by the creation of a single modular platform of cars under the Aurus brand,” the Minister noted.

It is planned that, as part of existing licenses, the production of the entire Lada line of cars at AvtoVAZ plants will continue. The company will also be engaged in servicing Renault cars on the Russian market.

The Moscow Renault plant will be accepted on the city’s balance sheet and Moskvich cars will be produced there, as the mayor of the capital, Sergei Sobyanin, wrote in his blog.

“The foreign owner has decided to close the Moscow Renault plant […] I have decided to take the plant to the balance of the city and resume the production of passenger cars under the historic Moskvich brand,” the mayor said.

In addition, KAMAZ will become the technological partner of the plant. At the first stage, the company will establish the production of cars with an internal combustion engine. Localization of the production of automotive components is also possible.

Ru-Main, 16.05.2022
Source: Interfax 

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