Renault approves sale of its Russian assets

(Source: Reuters)

French carmaker Renault says it is selling its Russian branch to Moscow City and its stake in Russian company Avtovaz to a local state-owned institute. Renault said Monday its board of directors approved the deal to sell its 67.69% stake in Avtovaz, the company making Lada, to NAMI, the scientific research automobile and automotive engine institute of the Russian Federation.

The agreement provides for a six-year option for Renault to buy back its stake in Avtovaz. The CEO of Renault Group, Luca de Meo, called it a difficult but necessary decision. He says, "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." In March, Renault said it would pause production at its Moscow plant amid mounting criticism of its foothold in the Russian Federation.