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.

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