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The
Western carmaker most exposed to the Russian market, Renault
added that its holding of nearly 67.69% in Avtovaz would be sold
to the Russian Central Research and Development Automobile and
Engine Institute, called Nami.
"The closing of these transactions is not subject to any
conditions, and all required approvals have been obtained," it
added.
Its 100% shares in Renault Russia will go to the city of Moscow.
"Today, we have taken a difficult but necessary decision, and we
are making a responsible choice towards our 45,000 employees in
Russia," CEO Luca de Meo said.
Two sources familiar with the situation told Reuters that
Renault Russia and Avtovaz were sold for one symbolic rouble
each.
The move preserved the group's performance and its ability to
return to the country in future in a different context, he
added.
In March, Renault said it would suspend operations at the plant
amid mounting pressure over its continued presence there since
the start of the conflict in Ukraine.
The company, which is 15% owned by the French state, confirmed a
non-cash writedown of nearly 2.2 billion euro ($2.29 billion) to
reflect the potential costs of suspending operations in Russia.
More than 400 companies have withdrawn from Russia since it
invaded Ukraine on Feb. 24, leaving behind assets worth billions
of dollars.
Russia calls its actions a "special operation" to disarm Ukraine
and protect it from fascists. Ukraine and the West say the
fascist accusation is baseless and the war is an unprovoked act
of aggression.
($1=0.9612 euros)
(Reporting by Benoit Van Overstraeten and Gilles Guillaume;
editing by Clarence Fernandez and Jason Neely)
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