TopWorld

Renault pulls out of Russia

French carmaker Renault says it is selling its majority stake in the Russian carmaker Avtovaz, in an agreement that will cost it some €2.2bn, the BBC reports.

Its holding of nearly 70% in Avtovaz is to be sold to the Russian Central Research and Development Automobile and Engine Institute, called Nami. The deal includes a six-year option to buy back the stake.

And its 100% shares in Renault Russia will go to the city of Moscow, the company said.

Moscow has said the company’s Russian assets have now become state property.

“Today, we have taken a difficult but necessary decision, and we are making a responsible choice towards our 45,000 employees in Russia,” said Chief Executive Luca de Meo.

In March, the car manufacturer said it was suspending work at its Moscow factory.

Show More
Back to top button