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Renault left Russia. AvtoVAZ was nationalized – news from Ukraine, Auto

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The French group Renault left Russia. The AvtoVAZ factories in Tolyatti and Izhevsk, which belonged to the French, became the property of the Russian government, and the Moscow plant became the property of the city administration, reported Ministry of Industry and Trade of the Russian Federation.

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Under the terms of the agreement, the government of Moscow became the owner of 100% of the shares of CJSC Renault Russia, and 67.69% of the shares of AvtoVAZ – the state enterprise NAMI, which developed Aurus car project. Rostec Corporation remains the owner of the remaining AvtoVAZ shares.

Renault has received a six-year option to buy back its stake in AvtoVAZ if it wants to return.

In Tolyatti, they now plan to produce only Ladas, while the Moscow plant is going to resume production of cars under the Moskvich brand.

KamAZ will become the main partner of the revived Moskvich plant. At the first stage, the production of classic cars with an internal combustion engine will be organized, and in the future, electric cars, according to site mayor’s office of Moscow.

  • The Russian market was the second largest for Renault. At the end of 2021, the company valued its business in the country at $2.4 billion. The French automaker received about a tenth of its revenue from sales in Russia.
  • On March 11, Bloomberg wrote, citing sources, that Renault does not want to cut ties with Russia, fearing the nationalization of AvtoVAZ. But a little less than two weeks later – on March 23 – the French concern nevertheless officially announced shutdown of the plant in Moscow and that he is considering available options for parts in AvtoVAZ.

Andrey Vodyany

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