Renault ends in Russia, AvtoVAZ hands over to the research institute. But he can go back there

For a symbolic one ruble, Renault will transfer its 68% stake in AvtoVAZ to the automotive research institute NAMI. Interfax Agency said Russian Minister of Industry and Trade Denis Manturov. Reuters turned directly to the French manufacturer, who declined to comment, as did the French finance ministry. France has a 15% stake in Renault. According to Manturov, the transfer of a majority stake is due to the financial inability to keep production in Russia running. He also noted that NAMI, in cooperation with the Rostec Group (which owns the rest of the Russian manufacturer), will select the new management of AvtoVAZ.

Manturov added that Renault will be able to buy back its stake over the next five to six years. “However, if we make any investments during this time, they will be taken into account in the possible price. We will not give any gifts,” he added. AvtoVAZ, which manufactures cars under Toljatti (Renaulty Logan and Sandero) and Izhevsk also produce cars under the Lada brand, relies heavily on French technology, including engines. It will not be clear how it will be used, but at the beginning of April the carmaker stated that it was preparing some models with equipment that does not rely so much on the import of components.

The Minister of Commerce also said that the plant of the French carmaker in Moscow will be transferred to the ownership of the capital’s municipality. However, it is not yet clear what will happen to Renault’s technologies. At the local plant, the French produce models under their own brand specifically for the Russian market. These are the SUV Duster, Kaptur and Arkana, which share the platform.

Russian diary Kommersant referring to his own resources, he informed that Russia’s representatives had also negotiated with Renault about the possibility of not transferring the property, but buying it. However, in such a case, the Russian side wanted the rights to the new models and a license to manufacture them for the following years. However, due to component supply problems, this would be minimally complicated.

Reuters warned that the fate of Renault is one of the first examples of what the Russian authorities want to do with the assets of Western companies. In response to the invasion of Ukraine, they began to leave Russia in droves. Among the carmakers affected is the Volkswagen Group, which also produces Škoda and Mercedes-Benz models in Russia. The Russian government has previously threatened to nationalize the assets of Western companies leaving the market due to the invasion.

In conclusion, Lada has long been the best-selling brand of new cars in Russia, it belongs to her about 22 percent of the market. More than 40,000 people work in Renault’s Russian factories.

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